GBP/USD drops toward 1.4150 as the US dollar strengthens on economic data

• Cable retreats from monthly highs, turns negative for the day.
• US dollar rises across the board supported by US economic data.

The GBP/USD dropped to 1.4153 amid a rally of the US dollar across the board. Cable retreated sharply after hitting at 1.4233 the highest level since February.

An impressive reading of the preliminary IHS Markit for May of the service sector boosted the dollar. Also a rebound in US yields contributed to the rally of the greenback.

The DXY is up 0.25% on Friday after spending most of the day in negative territory. It bottomed at 89.65, the lowest level since March before turning to the upside. The 10-year yield rose from the lowest in a week at 1.61% to 1.63%.

The GBP/USD pulled back and EUR/GBP rebounded back above 0.8600. The pound weakened during the American session. Versus the US dollar, it is trading at 1.4165, down for the day but still up 75 pips from the level it had a week ago. It is on its way to the highest weekly close since 2018.

Technical levels