GBPUSD rallied today following better than expected UK services data after shrinking in early 2018, but the pound remains under pressure due to uncertainty about Brexit as well as the Bank of England's path towards tightening monetary policy.
The Service PMI rose 3-month highs in May by 54 points, better than expected, pushing the pound closer to 1.34 levels, its biggest daily gain in seven weeks.
The euro remained steady at 1.1690, up from a 10-month low of 1.1510 to recover following the calmness of political situation in Eurozone.
US employment data last Friday revived expectations that the Federal Reserve will raise interest rates three more times this year, even though the Federal Reserve's expectations remain only twice this year. The dollar index is currently stabilizing at 94 levels and is approaching a downtrend line on the 1-hour chart.
