Sterling Pound Falls on Weak UK Services PMI Data

The Sterling pound today declined slightly against the US dollar following the release of the weak Markit/CIPS UK Services PMI data in the early European session. The pound was minimally affected in the early American session after several releases from the US docket such as the positive jobless claims data.

The GBP/USD currency traded mostly in a range today as bulls battled the bears for control with neither side emerging as the winner. The cable was stuck in a sideways range between a high of 1.3631 and a low of 1.3570.

The release of the Markit/CIPS UK Services PMI is what triggered the pair’s initial decline as it came in at 52.8, which was lower than the consensus estimate of 53.5. The Chief Economist at Markit, Chris Williamson stated that, “The services survey adds to signs that the rate of economic growth remained disappointingly subdued at the start of the second quarter.’ The three PMI surveys collectively showed only a muted rebound in business activity at the beginning of the second quarter.

Other releases from the US docket such as the initial jobless claims data released by the Department of Labor and the trade balance data released by the Census Bureau triggered a brief decline in the currency pair.

The currency pair’s short-term performance is likely to be influenced by the release of the US ISM Non-Manufacturing/ Services Composite later today.

The GBP/USD currency pair was trading at 1.3588 as at 13:54 GMT having declined from a high of 1.3631. The GBP/JPY currency pair was trading at 148.52 having dropped from a high of 149.46.

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