The GBP/USD pair maintained its bid tone near session tops – around the 1.2920-25 region – and had a rather muted reaction to the mixed UK macro data. The pair managed to gain some positive traction on the last trading day of the week and built on the previous session’s intraday bounce from near three-month lows amid a modest US dollar pullback from multi-year tops. GBP/USD supported by retreating USD Fears surrounding the outbreak of coronavirus beyond China triggered a fresh wave of the global risk-aversion trade and led to a sharp downfall in the US Treasury bond yields, which prompted some USD profit-taking. Apart from the USD weakness, the uptick was further supported by stronger UK flash Manufacturing PMI , which remained in the expansion territory and came in at 51.9 for February vs. a dip to 49.7 expected. The positive reading, to some extent, was offset by a slight disappointment from the UK flash Services PMI, which edged lower to 53.3 during the reported month as compared to 53.4 anticipated and 53.9 previous.
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