Pound Sterling Recovers Despite Weaker PMI Data
The Pound Sterling (GBP) has rebounded, trading above 1.3250 against the US Dollar (USD). The recovery follows a decline caused by weaker-than-expected UK PMI data.
UK PMI Data
The UK's S&P Global Purchasing Managers' Index (PMI) for September came in below expectations, suggesting a slowdown in economic activity. However, the overall outlook remains positive, according to Chris Williamson.
Fed Rate Expectations
The Federal Reserve (Fed) is expected to cut interest rates further, with a high probability of a 50 basis points (bps) reduction in November.
Economic Data
Investors will focus on the US S&P Global PMI data for September, which is expected to show growth in the manufacturing and services sectors.
Technical Analysis
The GBP/USD pair has broken above the 20-day Exponential Moving Average (EMA), indicating a bullish trend. The 14-day Relative Strength Index (RSI) remains above 60.00, suggesting strong bullish momentum.