GBP/USD extends losing streak as strong US PMI fuels Dollar strength, Jackson Hole in focus

• GBP/USD remains under pressure, sliding for the fourth session in a row amid firm Greenback demand
• The Greenback strengthened broadly, with the US Dollar Index rising to 98.50, its highest mark in a week, on the back of upbeat PMI results.
• Focus shifts to the Jackson Hole Symposium, with Fed Chair Powell's speech on Friday.

The British Pound (GBP) extends its decline for the fourth consecutive day against the US Dollar (USD) on Thursday, with GBP/USD slipping below the 1.3450 level. At the time of writing, the pair is trading near 1.3435, weighed down by a stronger Greenback and diverging economic signals.

The US Dollar strengthened across the board after the upbeat Purchasing Managers Index (PMI) data, with the US Dollar Index (DXY), which tracks the value of the Greenback against a basket of major currencies, rising sharply to a fresh weekly high around 98.50.

The S&P Global PMI surveys (August preliminary) highlighted strong momentum in the US economy. The Composite PMI climbed to 55.4, slightly higher than July's 55.1, while the Manufacturing PMI jumped to 53.3, a sharp rebound from 49.8 in July and well above the forecast of 49.5, marking a return to expansion. The Services PMI came in at 55.4, easing modestly from 55.7 in July but still topping expectations of 54.2, signaling sustained strength in the sector.

Labor market data offered a contrasting picture. Initial Jobless Claims rose to 235,000 in the latest week, above expectations of 225,000 and the prior 224,000, marking an eight-week high and reinforcing signs that the labor market is gradually cooling.

Adding to the mix, the Philadelphia Fed Manufacturing Survey (August) unexpectedly contracted to -0.3, compared with market expectations of 7 and the July reading of 15.9.

In the United Kingdom, the S&P Global Composite PMI preliminary reading for August improved to 53.0, the strongest pace since April and higher than July's 51.5. Services activity remained the main driver, rising to 53.6, above expectations of 51.8 and unchanged from July. Manufacturing, however, weakened further, falling to 47.3 from 48.0 in July and missing the forecast of 48.3. The figures highlight a services-driven recovery in the UK economy, but with manufacturing in deeper contraction, Sterling remains under pressure.

Attention now turns to the Jackson Hole Symposium, where Federal Reserve (Fed) Chair Jerome Powell is scheduled to speak on Friday. His remarks will be closely watched for clues on the Fed's monetary policy outlook and could set the near-term direction for the US Dollar.