Decline of UK Service Industries Hurts Pound

The Great Britain pound tumbled today as the Services Purchasing Managers’ Index slumped in August, confirming a bad state of Britain’s economy and reducing attractiveness of the UK currency as a haven from problems in continental Europe.
The Services PMI dropped from 55.4 in July to 51.1 in August, only a little above the level of 50.0 that indicates no change. The report said:

Respondents primarily blaming a weaker underlying trend in new business and general economic uncertainty. There were a few reports that the rioting and public disorder seen in some areas of the country in early August had adversely affected activity.

GBP/USD slumped from 1.6150 to 1.6076, following the jump to 1.6185, and GBP/JPY tumbled from 124.20 to 123.64 today as of 14:01 GMT.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *