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GBP Higher as Composite PMI Hits Series Record

FOREX
  • Having rolled off the week's highs of 1.4248 over the past few sessions, GBP is the strongest performer in G10 so far Thursday, with a decent final revision to May services PMI adding a tailwind. This bumped the composite PMI for May to 62.9, the highest such reading since the series began in 1998. GBP/USD eyes first resistance at 1.4248, which marks fresh 2021 highs, ahead of 1.4315, April 18 2018 high.
  • USD also trades well, although markets will be wary of a repeat performance from Wednesday, where the USD gained throughout European hours before reversing course through the NY open. The USD Index sits just above the 90.00 handle at pixel time.
  • Markets watch the release of ADP employment change today, weekly jobless claims and ISM services data. The manufacturing ISM earlier this week showed a sharp slowdown in the employment subcomponent, raising focus for Friday's nonfarm payrolls release, in which markets see net gains of around 650k jobs. The whisper number for Friday's headline is currently at a lofty 780k.
  • Speeches are due from BoE's Bailey, Fed's Bostic, Kaplan, Harker and Quarles.

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