Sterling strengthened against the U.S. dollar Monday as oil prices fell amid reported Iran-Qatar diplomatic contacts, while a U.S. manufacturing survey showed activity expanding for a 10th straight month.
FXStreet’s later market snapshot, recorded at 10:57 a.m. ET (15:57 UTC), put GBP/USD at $1.3423, up 0.26% on the day. The outlet said sterling had reached $1.3448 earlier, its highest level in six weeks. FXStreet interpreted the U.S. figures as potentially supportive of the dollar but said a weaker dollar and lower oil prices were helping the pound.
The Institute for Supply Management (ISM) reported that its Manufacturing PMI rose to 55.5 in October from 54.5 in September, extending the sector’s expansion to a 10th consecutive month. ISM’s index is survey-based, and readings above 50 indicate expansion. The Production Index advanced to 59.0 from 56.7. The Employment Index eased to 52.4 from 52.7, while the Prices Index slipped to 75.2 from 77.9.
Brent crude fell 6% to $106.65 a barrel, while U.S. West Texas Intermediate (WTI) dropped 6.1% to $97.75 at 8:57 a.m. ET (13:57 UTC), Reuters reported. The agency linked the declines to hopes that discussions involving Iranian and Qatari officials could ease risks to regional energy supplies. Reuters said officials might meet again and a draft text had emerged from earlier discussions. Iranian President Masoud Pezeshkian said Tehran “will try to resolve the problem with dialogue,” Reuters reported, citing Iranian state media.
The Bank of England is scheduled to announce its next policy decision Thursday, Nov. 5, and lists Bank Rate at 3.75%. The U.S. Bureau of Labor Statistics (BLS) will publish its October Employment Situation report Friday, Nov. 6, at 8:30 a.m. ET (13:30 UTC).
