UK services PMI beats with 53.5

Some good news from the biggest  sector in the UK: the situation is more upbeat than  expected with 53.5 points in services, despite the upcoming EU Referendum.

GBP/USD was already moving a  bit higher ahead of the  release and the reaction is quite shallow. There is also tension towards the NFP.

Markit’s purchasing managers’ index for the services sector was expected to tick down  up from 52.3 points in  April to 52.5 in May, reflecting modest growth in the UK’s largest sector. This is the last and most important of PMIs.

GBP/USD traded around 1.4430 ahead of the publication.

Earlier this week, the  manufacturing PMI beat expectations while  construction missed. Both of them showed very modest growth. The tension towards the EU  referendum may already be taking its toll on  business confidence.

The pound has been pound this week on  polls suggesting a momentum for the Brexit campaign. This has changed the mood which has already looked more positive for the Bremain camp.

Today’s big event is the US Non-Farm Payrolls. See how to trade the NFP with EUR/USD.

GBPUSD June 3 2016 looking vulnerable

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.