MARKET NEWS

Pound (GBPUSD=X, GBPEUR=X)

The pound dipped against the dollar and euro on Friday to start off August, as it capped off its worst monthly loss since Liz Truss's mini budget. 

Traders are now looking to the latest purchasing manufacturers index (PMI) reading for more clues on the health of the UK economy, as growth worries linger. 

Sterling (GBPUSD=X) fell below the $1.32 mark, pulling 0.1% lower in the morning session. Over the past five days it is 1.9% lower against the greenback. 

Alongside new data, fresh tariffs from the US are firmly on the radar, spelling more uncertainty for the global economy. 

Friday marks Trump's self-imposed deadline for some US trade deals. Notably, Canada faces a 35% tariff via a new executive order – an increase from the 25% previously imposed. 

Prime minister Mark Carney said he was "disappointed" with the policy, however many goods subject to the trade rules have already been exempted from those costs under a previous deal.

The UK struck a deal with the US in May, however the terms are not yet set in stone, with steel tariffs still a question mark. 

The US dollar index (DX-Y.NYB), which tracks the greenback against a basket of six currencies, was little changed at around the 100 mark.