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Pound finds more reasons to rise – Services PMI beats

The third and last purchasing managers’ index from the UK followed the second one and beat expectations. Services PMI came out at 58.5 points for June,  reflecting strong growth in Britain’s largest sector. This is above 57.4 expected and 56.5 seen in May.

GBP/USD advanced  and hit a high of 1.5637 before bouncing back down. All in all, sterling is weathering the “flight to safety” storm that has a positive effect on the dollar and the yen.

Yesterday, we had a  positive construction PMI in the UK. However, manufacturing PMI fell short of predictions.

The focus of the markets has been on the Greek crisis, and that also has an impact on the UK economy. We have heard some hawkish tones from the Bank of England, and it’s clear that the UK  raises rates before the ECB. However, such a rate hike could be pushed back if the situation in the UK’s biggest trade partner deteriorates.

More:  GBPJPY Tripple Inside Day Combo – Waiting for a Breakout

GBPUSD July 3 2015 technical chart higher on services PMI

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.