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UK Services PMI stays strong at 58.6 points – GBP/USD

UK Services PMI for May stands at 58.6 points. Markit’s purchasing managers’ index for the services sector was expected to slide modestly from 58.7 points in April to 58.3 in May, still reflecting strong growth in the UK’s largest sector.

GBP/USD was falling towards the publication, losing the 1.6720 line and  even temporarily dropping under 1.67. After the  publication, cable is back up to 1.6722. Once again, the market was positioning itself towards the event and reversed afterwards.

This is the third and last of a series of PMIs. Manufacturing came out as expected at 57 and  construction fell slightly short at 60 points. All three figures are significantly above the 50 point line that separated contraction and growth.

The PMIs grab the attention as they are forward looking indicators. They easily overshadow the rate decision tomorrow, which is expected to remain a non-event, like almost every rate decision in recent years.

Resistance awaits at 1.6770 and 1.6720 works as weak support, followed by 1.6668. For more lines, events and analysis, see the GBPUSD prediction.


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.