A positive surprise for the largest part of the UK economy: Markit’s services PMI rises to 58.9 points, significantly better than expected and reflecting strong growth.
GBP/USD is not convinced, and seems to struggling with the comeback of the greenback. The pound does show its strength against the euro though.
The UK services PMI was expected to tick up from 56.7 to 57.1 points in March. We have seen manufacturing PMI come out slightly above expectations while the construction PMI disappointed. This isn’t too bad as it shows some convergence.
GBP/USD traded under 1.49 towards the publication, slightly pressured by a comeback of the US dollar.
The services sector is the largest in the UK and has been in the middle between the surging construction sector and the lagging manufacturing one throughout this positive economic cycle.
The elections in the UK continue to impact the pound. Recent polls continue showing a tight race between the two main parties, with many possibilities of coalition governments emerging.
More: GBP: April Is The ‘Cruelest’ Month, Then A Turn – Goldman Sachs
In this week’s podcast, we feature an Interview with FXStreet President Francesc Riverola on the industry, volatility and more
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