Ella 
In the Asian market on Thursday, GBP/USD extended its decline and fell close to 1.2710. GBP/USD came under downward pressure after flash UK (UK) PMI data came out weaker than expected on Wednesday. The initial value of the S&P Global/CIPS Composite Purchasing Managers Index (August) was 47.9, lower than the previous value of 50.8 and the expected 50.3. The index fell below 50 for the first time since January.
However, the U.S. PMI also came in below consensus, which helped GBP/USD par the previous day’s losses. Also, a sharp drop in US Treasury yields on the back of weak US economic data put downward pressure on GBP/USD.
As mentioned earlier, the S&P Global Manufacturing Purchasing Managers Index (PMI) fell to 47 from the previous value of 49 in August, which was weaker than the consensus forecast of 49.3. In August, the S&P Global Services PMI fell from the previous value of 52.3 to 51, below expectations of 52.2.
Weakness in U.K. and U.S. purchasing managers’ indexes signaled weaker economic activity, making market expectations less likely for central banks to raise interest rates when they meet in September. That put market participants in a state of caution, seeking further clues on the economic outlook and inflation scenarios.
The U.S. dollar index (DXY), which measures the greenback’s (DXY) performance against six major currencies, is hovering around 103.40 at press time. Investors turned cautious ahead of the upcoming annual Jackson Hole symposium, with Federal Reserve Chairman Jerome Powell due to deliver a speech on Friday.
Traders are likely to focus on U.S. weekly jobless claims data due later in the day. In the UK, the GfK Consumer Confidence Index for August will be released on Friday. The data could provide valuable insight into the state of the U.K. and U.S. economies, offering fresh clues to GBP/USD traders.
