GBP/USD LOOKS FRAGILE AFTER DISAPPOINTING UK DATA
GBP/USD LOOKS FRAGILE AFTER DISAPPOINTING UK DATA
The British pound faced downward pressure against the US dollar on Wednesday, April 23, 2025, following the release of weaker-than-expected UK economic data.
GBP/USD dropped below the 1.3250 level in the Asian session, reflecting concerns over the UK's economic outlook.
The S&P Global/CIPS Composite Purchasing Managers' Index (PMI) for the UK fell to 48.2 in April's flash estimate, down from 51.5 in March.
This marks the steepest decline in private sector activity since early 2020, indicating a contraction in business activity.
The Services PMI dropped to 48.9, the lowest in 27 months, while the Manufacturing PMI fell to 44.0, a 20-month low.
Notably, new export orders declined sharply, reflecting the impact of global trade tensions and rising business costs.
Despite the disappointing data, the pound showed resilience, recovering to around 1.3337 against the US dollar.
This rebound suggests that while the data was concerning, it may not have been entirely unexpected by the market.
The UK's economic outlook remains uncertain, with concerns over potential slowdown in the second quarter of 2025.
Factors such as global trade tensions and rising business costs continue to weigh on the economy.
