Forex – GBP/USD Under Pressure as Strong Data Boost Dollar – The dollar rose against a basket of major currencies as investors cheered bullish economic data pointing to underlying strength in the US economy.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.36% to 89.36.

data for January showed an uptick to 59.9, beating expectations of 56.5.

The services sector is critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).

Analysts said the strong ISM reading was indicative of strong economic activity, which could strengthen further should tax-reform measures lead to a solid rise in consumption.

“The reading today is consistent with an economy that is growing close to 3%,” Bank of Tokyo Mitsubishi said. “If consumers and companies spend the tax reform monies like they are supposed to, this could be the best year for the economy since the housing bubble years in the mid-2000s.”

Also supporting the dollar was a slump in the pound following UK data that fell short of expectations. While the euro moved off lowed against the greenback following comments from European Central Bank governor Mario Draghi who confirmed the euro area economy was expanding and inflation remained on track to meet the central bank’s target of close to 2%.

fell to 0.68% to $1.4017, while fell 0.35% to $1.2412.

fell 0.10% to Y110.05, while rose 0.51% to C$1.2492 as the loonie came under pressure following reports that North American Free Trade (NAFTA) negotiations turned sour after reaching an impasse over dairy trade.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.