The pound is down in a limited range ahead of industrial sector data
The pound recorded a limited decline against many major currencies early in the week and traded in a narrow range against the US dollar to stay near its two-week low. The limited decline comes as the US dollar continues to rise against most major currencies, Investors are looking to build new buying positions in anticipation of important data on the UK industrial sector during September, which will be released later in the day.
At 07:30 GMT, the pound traded against the US dollar at $ 1.3040 from today's opening at $ 1.3039, recording a high of $ 1.3043 and a low of $ 1.3022.
Over the course of last Friday's trading, the pound fell against the US dollar, losing 0.35% for the third day in a row, reaching a two-week low of $ 1.3000, as the greenback gained against many major currencies.
The pound was the second consecutive quarterly loss in the third quarter, losing about 1.35% of its value against the US dollar. The strong losses stemmed from the strength of the US dollar and its rise against the majority of major currencies supported by rising demand rates as a safe reserve currency. Global trade tensions have continued to rise as well as the Federal Reserve's continued tightening monetary policy. On the other hand, there is growing uncertainty about the negotiations of Britain's secession with the European Union.
The British economy is expected to release important industrial sector data later in the month. The sector PMI is expected to post a reading of 52.6 points from the August reading of 52.8 points.
The euro continues to fall below $ 1.16
The euro continued its decline against many of the world's currencies on Monday to fall below $ 1.16, recording its fifth consecutive daily loss, near a two-week low.
Over the course of last week's trading, the single currency lost about 1.2%, hitting a two-week low of $ 1.1569 last Friday as the US dollar continued to strengthen against most major currencies, as well as growing concerns about Italy's budget deficit. The single currency, as the Italian government agreed to set a higher-than-expected budget target.
The European economy is due to release later in the day the final reading of the eurozone industrial sector purchasing managers' index last September, and is expected to record 53.3 points from 54.6 points recorded in August.