Services Sector Data Weighs on UK Pound

The latest data from the services sector is weighing on the UK pound, sending it lower against the dollar and the yen. While the pound is gaining against the euro, it is struggling in other areas as concerns about economic cooling impact performance.

The latest data from Markit/CIPS shows that the Purchasing Managers’ Index (PMI) for August dropped to 55.6 from the July reading of 57.4. While it is true that anything over 50 represents an expansion, it appears that the recovering in the United Kingdom is slowing, and that is causing concern for some, especially since many analysts had expected an increase in the reading.
UK data has been something of a mixed bag lately, and the Bank of England is struggling with what to do about the situation. For now, the sterling is trading mixed against its major counterparts. UK pound is higher against the euro, which is falling back after a few days of gains, but lower against the dollar and the yen as markets move into a correction from recent days.
At 13:58 GMT GBP/USD is lower, dropping to 1.5263 from the open at 1.5298. EUR/GBP is down, falling to 0.7283 from the open at 0.7337. GBP/JPY is down, moving lower to 182.9090 from the open at 184.1060.

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