UK Services PMI drops to 57.6 in March, slightly below expectations. The UK services purchasing managers’ index by Markit was expected to remain unchanged at the high level of 58.2 points, reflecting solid growth in the UK’s largest sector. While the number still reflects strong growth, it is the third consecutive PMI that misses.
GBP/USD fell from the highs to 1.6634 towards the release. It free fell to 1.66 in the immediate aftermath, below 1.6618 support.
At the same time, the Housing Equity Withdrawal quarterly figure was released, and it was expected to stand at -9.4 billion. The actual number is -10.6 billion, also below expectations.
Earlier, markets pushed cable higher on comments from Carney. The governor of the BOE basically said that the political cycle would not impact the Bank’s decision, but this was said in the context of rate hike in the spring of 2015. So, it was interpreted as hinting of an early rate hike. The move didn’t last too long.
Earlier in the week, both the manufacturing PMI and the construction PMI fell short of expectations, but weren’t that bad.
1.6618 serves as support, and 1.6668 as resistance. For more, see the GBPUSD forecast.
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