UK Services Sector Slides – GBP/USD Follows

British services PMI fell to 51.3 points, lower than 52.9 that was expected. Last month’s number was 53.3. This is still in growth territory, but the growth is weak.

GBP/USD extends its slide below 1.5650. The pair traded under 1.5680 and began sliding towards the release. It fell as low as 1.5630 before bouncing a bit back.

The other two British sectors are contracting: the manufacturing sector managed to rise from the weakness seen in the previous month and exceeded expectations by rising to 48.6 points. However, this is still under the 50 point mark separating growth and contraction.

The construction sector also disappointing and surprisingly slid into contraction zone, by falling to 48.2 points. 53.1 was expected after last month’s healthy 54.4 points.

There is a clear consensus that the Bank of England will add more monetary stimulus in the form of an additional 50 billion pounds in its QE program. The decision is scheduled for Thursday and isn’t expected to rock the markets unless the actual move is smaller or larger.

Some expect an expansion of 75 billion pounds.

For more on the pound, see the GBP USD forecast.