The GBP/USD pair gained ground, approaching 1.3105 as markets brace for addresses by Bank of England (BoE) Governor Andrew Bailey and Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Stronger-than-anticipated PMI data from the UK, coupled with the latest US services PMI, has injected bullish momentum into the currency pair. The GBP/USD exchange rate may rebound following these speeches, as investors gain clarity on forthcoming monetary policy directions.

Pound Buoyed by Positive PMIs

Sterling surged on the back of stronger-than-expected Purchasing Managers' Index (PMI) figures from the UK, signalling vigorous growth in the UK's private sector. The preliminary UK Composite PMI for August registered at 53.4, up from July’s 52.8.

Meanwhile, Manufacturing PMI rose to 52.5 in August from 52.1 in July, surpassing the 52.1 forecast. These potent economic reports could reshape market sentiments regarding potential rate adjustments. Market attention is now focused on Governor Andrew Bailey's speech today at the Jackson Hole Symposium, as insights into the Bank's next move are eagerly awaited.

US Dollar Bolsters on Robust US Services PMI

While the US Manufacturing Purchasing Managers' Index (PMI) dipped to 48.0 in August, falling short of the projected 49.6, the Services PMI unexpectedly rose to 55.2, from the previous month's 55.0, defying forecasts of a decline to 48.0. Despite stable economic indicators, the USD remains susceptible to turmoil driven by market sentiment surrounding the Jackson Hole Symposium.

AUD Relishes Risk-on Sentiment Amid Weak USD

The Australian Dollar benefited from the Reserve Bank of Australia's hawkish mood about its policy outlook. Australia's Judo Bank Composite Purchasing Managers Index (PMI) increased to 51.4 in August from 49.9 in July, indicating the swiftest growth in services output in three months. The AUD/USD pair recovered to 0.6700 following mixed US economic data. The RBA's assertive policy stance could further bolster the AUD.

Euro Declines Due to Eurozone PMIs

Mixed Eurozone PMI prints caused the Euro to depreciate against other currencies. The HCOB's latest Purchasing Managers Index (PMI) declined to 45.6 in August from July’s 45.8, falling below the 45.8 forecast. However, the bloc's Services PMI bounced to 53.3 in August from 51.9 in July, exceeding market expectations. The HCOB Eurozone PMI Composite unexpectedly rose to 51.2 in August from July's 50.2 figure, surpassing the anticipated 50.1. Market participants are closely monitoring potential rate cuts by the European Central Bank in September.

Canadian Dollar Suppressed Amid Soft Oil Prices

The oil-linked Canadian dollar struggles due to recent oil price dynamics. The latest retail sales figures and Fed Chair Jerome Powell's Jackson Hole address could immediately influence the currency’s movement. Recent Canadian July inflation data suggests the Bank of Canada may implement consecutive interest rate cuts in September.

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