The Great Britain pound recovered the part of its recent losses against the euro, the dollar and the yen today after the U.K. services index for December (reported by the Chartered Institute of Purchasing and Supply) unexpectedly rose.
Financial market analysts expected the PMI index (services index) to be reported at 51.6 for December, slightly lower than the November’s 51.9, but it has exceeded everyone’s expectations and was reported at 52.4, showing a gain of confidence in the services sector of the Great Britain economy.
This optimistic data greatly reduce the chances for the Bank of England to cut the main interest rate again next week. As the workers’ wages rise lifting the inflation and good service index is showing that the economy is going to grow, the demand for another rate cut is lowering.
Today on Forex Great Britain pound rose against the U.S. dollar — GBP/USD increased from 1.9709 to 1.9771, against the euro — EUR/GBP fell from 0.7483 to 0.7443 and against the Japanese yen — GBP/JPY increased from 215.44 to 216.34. But in all three cases GBP failed to grow beyond the yesterday’s opening level, thus remaining in a bearish trend.
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