British Pound retreated on Friday from two months high against the US Dollar making light of a strong PMI in UK manufacturing sector. Traders took profits following recent Pound appreciation thanks to the signs of progress in Brexit talks.
Latest data showed that business activity in UK manufacturing sector outstripped market anticipations. This report came amid signs of progress in the negotiations between UK and EU after EU diplomats reported the country was close to striking a deal on free trade market access as well as Ireland borders status.
The Dollar came under selling pressure after Thursday night as the US Senate postponed the vote on tax reform until Friday. The cause of delay was a dissent of Republicans with several fiscal hawks among their ranks trying to push the extremely soft version of the reform. The likelihood of a successful vote on this bill has increased after Senator John McCain announced his support to it.