UK Services PMI Hits 53.6 – GBP/USD Bounces In Range
Finally, a better than expected read: the services PMI rose to 53.6 points in September, better than expected. The services sector is Britain’s largest.
GBP/USD is rising from 1.3250 to 1.3270, well within the range. Cable is trading between 1.3235 to 1.3285 in recent days.
The focus now shifts to the US. The ADP NFP and the ISM Non-Manufacturing PMI will provide hints towards Friday’s all-important Non-Farm Payrolls.
The UK services purchasing managers’ index was expected to remain unchanged in September: 53.2 points. Any score above 50 reflects expansion and these kind of numbers represent moderate growth.
GBP/USD was trading around 1.3250 ahead of the publication, well within the recent ranges.
Earlier this week, the other PMIs fell short of expectations. The manufacturing PMI dropped slightly below expectations while the construction PMI pointed to contraction – a score under 50. In addition,
In addition, the pound suffered from the stalled Brexit talks. Despite a feel-good atmosphere after May’s Florence Speech, the EU says that not enough progress has been made. The British side talks about walking away from the negotiations. These could be tactical moves, but they are not helpful.
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