British Pound (GBP) Latest: GBP/USD Struggles Despite UK PMIs

[MongiIG]

Jul 22, 2022 | DailyFX
Justin McQueen, Strategist

BRITISH POUND RATE ANALYSIS AND TALKING POINTS

• GBP Struggles Despite UK PMIs
• Range Trading the State of Play into Fed

GBP STRUGGLES DESPITE UK PMIS

Much like the Euro, the Pound continues to struggle with the currency shedding 0.5% against the US Dollar. While the flash PMIs for July were better than expected, they have done little to support GBP, further emphasising that it is difficult to get bullish on the currency against the USD. What’s more, the latest YouGov poll has placed Liz Truss (62%) firmly in the lead against Rishi Sunak (38%) in the Tory Leadership race. To some extent, this will add concerns for GBP, given that Liz Truss had recently championed the BoJ’s policy for “controlling” inflation. A challenge to the BoE’s independence in favour of the BoJ’s stance is the last thing you want to hear if you are a Sterling bull.