GBP/USD has gained ground in the Wednesday session. In the North American session, the pair is trading at 1.2905, up 0.38% on the day. On the release front, Services PMI in August improved to 54.3, above the estimate of 53.9 points. In the U.S, the sole event was Trade Balance. The trade deficit continued to widen in July, with a reading of -$50.1 billion. This marked the highest deficit in 5 months. On Thursday, the U.S releases ADP nonfarm payrolls, unemployment claims and the ISM Non-Manufacturing PMI
The pound is in positive territory on Wednesday, after a rocky start to the week. Investors reacted negatively as the manufacturing and construction PMIs both fell short of expectations. These snapshots of the health of the UK economy indicated that the lack of direction over Brexit has had a negative impact on the manufacturing and construction sectors. The pound posted gains earlier in the Wednesday session, following a report that German officials might be will to sign an agreement with the UK even if not all issues were completely resolved. This buoyed investor confidence, but shows that the pound’s movement is very dependent on the extent of progress in the negotiations between the EU and the UK.
