The UK services sector continues growing at a satisfying pace: a score of 55.5 in the services PMI is within expectations.
GBP/USD is stabilizing around 1.4633 and taking a breather, at least for now.
Among the components we have stability also in other areas: new orders are at 56.4, similar to the 56.7 seen beforehand.
Markit’s purchasing managers’ index for the services sector, the largest and most important one in the UK, was expected to remain stable and tick down from 55.9 to 55.6 points, still reflecting strong growth.
Towards the publication, GBP/USD extended its falls, reached 1.4630 and still looking for a bottom.
Earlier this week, we had manufacturing PMI miss expectations while construction beat. These were “warm-ups” to the main dish – the services sector. All in all, the thrill seems to be gone for the UK economy: growth in GDP and in wages is slower and the In/Out EU Referendum expected later this year looms large.
The pound has suffered quite a bit against other currencies as well, most notably against the yen: GBP/JPY tumbled down below support at 175. The yen recently strengthened on safe haven flows related to the detonation of the bomb by North Korea.
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