The Great Britain pound extended its move down today, reaching the lowest level since April against the US dollar and the lowest since October 2014 versus the Japanese yen.
The Markit/CIPS UK Services PMI went down from 55.9 in November to 55.5 in December, though it remained comfortably above the neutral 50.0 level, indicating expansion of the sector. The more negative factor for the currency was uncertainty associated with the planned referendum regarding the membership of the United Kingdom in the European Union. The recent signs of slowing economic growth and wage inflation were also contributing to the sterling’s lackluster performance.
GBP/USD dropped from 1.4672 to 1.4652, reaching the daily low of 1.4619. GBP/JPY declined from 174.68 to 173.50 as of 12:19 GMT today.
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