The continuing slowdown in US bond yields supported the dollar and helped limit its decline. Optimistic indicators of business activity in the UK services sector helped the pound, but fears of a hard Brexit will continue to restrain any significant growth. The GBP/USD pair quickly turned around and rose to the level of 1.2100 dollars on optimistic macroeconomic data from the UK. The subsequent rollback of the dollar was due to the fall in the yield of US Treasury bonds in the conditions of global flight to a safe haven, this helped the pair to overcome the intraday fall. The British pound received an additional boost at the beginning of the week after the release of a stronger than expected indicator of the British PMI in the service sector, which in July rose to a nine-month high of 51.4 points. However, Brexit's expectations without a deal could keep the bulls on the defensive and stop any serious upswing, at least for the time being.

It is worth recalling the words of the senior adviser to British Prime Minister Boris Johnson, Dominic Cummings, that lawmakers can stop the hard Brexit, announcing a vote of no confidence, but it could not ease the concern. The market expects the UK to eventually withdraw from the EU on October 31, and these expectations will continue to negatively affect market sentiment around the sterling. In addition to the news related to Brexit, traders should pay attention to the publication of the non-production index of business activity of ISM in the US, which will definitely affect the dynamics of the dollar.