Contrary to the manufacturing and construction PMIs, the services sector in the UK is growing nicely according to PMI released by Markit.
The score of 52.4 exceeds expectations for a drop from 51.8 to 51.4. 50 points is the level that separates growth from contraction. GBP/USD is now recovering from the lows.
GBP/USD already fell to 1.5032 towards the release, and managed to escape the all important 1.50 line thanks to this publication. The pair recovered to 1.5080.
Cable suffered from the side effects of the big step in Japan – extreme monetary easing. USD/JPY leaped and the dollar enjoyed some strength against other currencies as well.
The services sector is the UK’s largest and most important one. The positive figure for March provides hope that the UK will manage to escape an official triple dip recession. The BOE isn’t expected to make any change in its rate decision, scheduled for 11:00 GMT.
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