Forex – GBP/USD Pulls Back From 2-Month Highs Despite Strong Data

© Reuters. Pound slips lower but remains supported by Brexit optimism – The pound pulled back from a two-month high against the U.S. dollar on Friday, despite the release of upbeat UK manufacturing activity data, as traders locked in profits from sterling’s recent climb thanks to signs of progress in Brexit negociations.

was down 0.27% at 1.3492 by 04:35 a.m. ET (08:35 GMT), just off a two-month high of 1.3550 hit overnight.

Data earlier showed that the UK manufacturing sector in November.

The report came amid signs of progress in negociations between the UK and the European Union, as EU diplomats said earlier in the week that Britain has moved to EU demands over Brexit.

Meanwhile, sentiment on the greenback remained vulnerable after the U.S. Senate on Thursday evening delayed a vote on the tax reform bill until Friday as a key element of the bill still needed to be debated.

However, the bill was seen like more likely to pass following .

Sterling was also lower against the euro, with up 0.33% at 0.8829.

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