The British Pound (GBP) showed little clear direction against the Euro (EUR) and US Dollar (USD) on Monday. This came as traders reacted to new PMI data and recent US airstrikes on Iran, which added uncertainty to the markets.
At the time of writing, the Pound traded at 1.16951 against the Euro, up 0.11%, and at 1.34787 against the US Dollar, rising 0.32%.
The Pound’s performance was mixed as investors processed fresh UK economic figures alongside global geopolitical tensions.
The latest flash PMI data showed a small improvement in the UK’s services sector. The June reading rose slightly from 50.9 to 51.3, matching expectations. This indicates that the UK’s private sector continues to grow, but only slowly.
Still, the overall tone of the report was cautious. It reflected a weak recovery and limited economic momentum, which kept the Pound from gaining strongly.
Adding to the pressure on the Pound, markets reacted nervously to unexpected US airstrikes on Iran over the weekend. This increased volatility and hurt risk-sensitive currencies like the GBP.
Meanwhile, the Euro moved without a clear trend, as investors digested the latest economic data from the Eurozone.
