The GBP/USD pair reaches a 3-week low.
The British pound sterling exhibits weakness against the US dollar, with the current GBP/USD exchange rate at 1.2080.
Over the past two days, the US dollar has notably fortified its position, adversely affecting various currencies, including the GBP.
Markets are bracing for a deluge of significant US economic data, including the release of Q3 GDP figures today and the announcement of the core PCE index tomorrow. In this climate, the demand for safe-haven assets is on the rise, bolstering the US dollar.
Recent statistics from the UK present a mixed picture. In October, the CBI industrial trends orders dropped from -18 points to -26 points. However, the preliminary manufacturing PMI in October increased to 45.2 points, up from the previous 44.3 points, while the services PMI decreased to 49.2 points from 49.3 points.
It's important to note that despite high UK inflation and rather stringent consumer demand conditions, businesses are sustaining their activity at a relatively high level. This provides a positive signal amidst challenging circumstances.