Home UK Services PMI misses with 53.3 – GBP/USD falls
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UK Services PMI misses with 53.3 – GBP/USD falls

The services sector  has slowed down in February: a score of 53.3 points or a drop of 1.2 points is not insignificant. Slower growth in the services sector may reflect slower growth  in the wider economy. So far, the British economy has not suffered  after the EU Referendum. The two quarters that followed the  Brexit vote actually saw strong growth. Are things beginning to change in 2017?

GBP/USD falls off previous trading ranges and dips below 1.2230. The low so far is 1.2226. Support awaits only around 100 pips lower, at 1.2120.  Weak resistance  caps the pair at 1.2250 and 1.2360 follows. The move is an extension of the downfall that is mostly driven by Dudley. Federal Reserve officials have laid down thick hints about a rate hike in March. Fed Chair Janet Yellen speaks late in the day.

Here is how things look on the pound/dollar chart:

The third, last, and most important purchasing managers’ index from the UK, the services PMI, was expected to slip from 54.5 to 54.1 in February. Any score above 50 points reflects expansion. The services sector is the largest in the UK, similar to other developed economies.

GBP/USD remained on the back foot ahead of the publication. The messy Brexit procedure, as well as the strength of the USD following hawkish Fed comments, pushed cable lower.

Earlier this week, construction PMI came out within expectations  while manufacturing missed.

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.