Pound Overcomes Service Data Drag

Service sector data sent the pound a little lower earlier, but now the sterling is overcoming some of that drag. Pound is still down against the euro, but it is gaining against other major currencies like the yen and the dollar.

The latest UK services PMI reading from Markit came in below expectations, and that sent the pound lower earlier. Analysts expected to see a reading of 59.2, and the actual reading came in at 56.5. Concerns about the economic fate of the United Kingdom are on the rise with this news, which represents the weakest services PMI reading of 2015.
The news sent the pound mostly lower earlier, with it dropping on expectations that the Bank of England will have to keep its easing program in place. Inflation remains below target, and that has some worried about the ability of the UK economy to pick up the pace.
Sterling has mostly recovered, however, gaining against the yen and the dollar. Euro remains higher relative to the pound, thanks in large part to continued hopes for a Greek deal.
At 11:11 GMT GBP/USD is up to 1.5422 from the open at 1.5340. EUR/GBP is up to 0.7362 from the open at 0.7349. GBP/JPY is also higher, gaining to 191.4420 from the open at 190.5950.

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Your email address will not be published.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 *