UK Services PMI Slides More Than Expected

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Britain’s services sector has slowed down in October according to the fresh purchasing managers’ index: the score dropped from 52.9 to 51.3, more than a drop to 51.9 that was expected. The impact on GBP/USD is minimal, as this surprise isn’t so dramatic. 

Britain’s construction sector provided an upside surprise by jumping to 53.9 points, whereas it was expected to remain at around 50 – the line separating contraction and expansion.

On the other hand, Britain’s manufacturing sector provided a very depressing outcome with a slide to 47.4, significantly in contraction zone. It was expected to stay above 50.

Global manufacturing is going down: this was seen in China and Europe as well.

GBP/USD is now trading at 1.5930, very similar to the price before the publication. For more on the pound, see the GBP/USD forecast.

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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 the 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.