GBP/USD news for August 3, 2026
Sterling slipped to the 1.3450 area after UK Manufacturing PMI was revised lower, while the dollar initially held ground despite joint yen intervention. However, the greenback later weakened as the US and Iran renewed diplomatic efforts, which also weighed on oil prices and supported risk sentiment. These crosscurrents left GBPUSD sensitive to shifting US policy headlines and UK data revisions.
How the day unfolded
GBP/USD is being driven by fluctuations in the US dollar, which initially held firm despite joint yen intervention but later weakened as the dollar index dipped below 100.00 on renewed diplomatic efforts between the US and Iran. Meanwhile, the pound remains under pressure, with CFTC data pointing to extended bearish positioning and historical data showing August has been the pair's most bearish month.
The British Pound eased to 1.3450 following a downward revision to UK Manufacturing PMI data, indicating softer economic momentum. Meanwhile, the US Dollar Index weakened below 100.00 as renewed diplomatic efforts between the US and Iran raised hopes for a de-escalation, though the dollar held ground amid other support. These mixed signals leave GBPUSD sensitive to upcoming data and geopolitical developments.
The pound eased to 1.3450 after UK manufacturing PMI was revised downward, while the dollar held ground despite a joint yen intervention. However, the dollar index weakened below 100 as US and Iran resumed diplomatic efforts, and strong US inflation comments added mixed signals. August has historically been a weak month for GBP/USD.
Headlines (16)
- The Weekly Bottom Line: Markets Issue a Yellow Card to the Fedwww.actionforex.com · Aug 1, 02:19 UTC
- ECB official warns climate crisis poses growing threat to ‘core financial stability’www.theguardian.com · Aug 1, 04:20 UTC
- CFTC Report: Bearish FX extremes deepen as cross-asset signals divergewww.fxstreet.com · Aug 1, 14:57 UTC
- The Bank of England Is Moving Away From Coaloilprice.com · Aug 1, 15:02 UTC
- If the Fed trusts this single 2.2% metric, Bitcoin could break $65.3k and ignite a path to $68kcryptoslate.com · Aug 1, 17:22 UTC
- Why Andy Burnham’s devolution pledge will be tricky to deliverwww.theguardian.com · Aug 2, 11:38 UTC
- Treasury sell-off shows Fed must reinforce inflation credibility, Musalem sayswww.hellenicshippingnews.com · Aug 2, 17:59 UTC
- Monday open indicative forex prices, 03 August 2026investinglive.com · Aug 2, 19:51 UTC
- United States Dollar Index weakens below 100.00 as Trump says new Iran talks would begin Mondaywww.fxstreet.com · 03:06 UTC
- GBP/USD: August Has Been the Pair’s Most Bearish Monthwww.investing.com · 06:43 UTC
- Forex Today: Mood improves as US and Iran renew push for diplomatic solutionwww.fxstreet.com · 06:57 UTC
- Sterling today: Pound slips as dollar holds ground despite joint yen interventionwww.investing.com · 08:14 UTC
- Appointment of Chair and Deputy Chair of the Enforcement Decision Making Committee (EDMC)www.bankofengland.co.uk · 09:00 UTC
- British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI datawww.fxstreet.com · 09:53 UTC
- WH NEC Kevin Hassett: US inflation numbers have been fantasticinvestinglive.com · 12:42 UTC
- Forex Today: Oil collapses on Iran talks, Yen holds gainswww.fxstreet.com · 20:43 UTC
Scheduled events
As of 23:44 UTC
- 2026-08-03 — Final Manufacturing PMI · forecast 52.8 · GBP
- 2026-08-03 — Final Manufacturing PMI · forecast 53.8 · USD
- 2026-08-03 — ISM Manufacturing PMI · forecast 54.0 · USD
- 2026-08-03 — Construction Spending m/m · forecast 0.2% · USD
- 2026-08-03 — ISM Manufacturing Prices · forecast 70.0 · USD
- 2026-08-03 — Omdia Total Vehicle Sales · forecast 16.3M · USD
- 2026-08-03 — Loan Officer Survey · USD
- 2026-08-04 — Trade Balance · forecast -73.0B · USD
Not investment advice. For informational purposes only.