Services PMI

The British Pound was seen under selling pressure in mid-week trade after the release of data that showed the UK's dominant services sector struggled in June.

Pound shows an initial positive reaction to Service PMI beat but we expect the gains to be limited as the details of the report are actually quite poor.

The UK Services PMI for January read at 50.1 according to a report released by IHS Markit on February 05, a figure that places the UK economy's largest sector marginally in growth territory with anything below 50 signalling contraction.

The British Pound is seen trading with a bid ahead of the release of Service PMI data, suggesting to us that the jitters sparked by the 'flash' trading event in Asia mid-week has failed to materially damage the currency's prospects.

The IHS Markit Service PMI for November read at 50.4; a few ticks away from the 50 figure that marks the watershed between expansion and contraction.

The Pound pared earlier gains during the opening session of the week after IHS Markit data appeared to show activity within the U.K.'s largest economic sector cooling at the beginning of the final quarter. 

What the Pound needs is May to deliver a statesman-like, error-free and compelling speech, one that assures markets that they won't have to face the uncertainty of another general election and one that suggests May will ultimately prevail in pushing her Brexit plan across the line.

The Pound shrugged off a surprisingly strong increase in the IHS Markit services PMI for August, which pointed to robust growth in the UK's largest economic sector, as uncertainty over the trajectory of the Brexit negotiations and a "risk-off" mood across markets kept Sterling under pressure during morning trading Wednesday. 

Foreign exchange markets will be eyeing the release of service sector PMI data for guidance on whether or not the British Pound's recent sell-off should be extended.

The Pound about turned and sank lower against a basket of comparable rivals during the morning session in London Thursday after the all-important services sector PMI fell much further than was expected for the month of March.

The Pound is rangebound in early London trade on Thursday, January 4 but markets could spring to life on the release of the all-important services PMI due at 09:30.

Tuesday’s data comes alongside heightened uncertainty for the Pound after PM May's last-ditch effort to move Brexit negotiations onward fell apart in Brussels Monday.

The deterioration of the all-important services sector in August could now mean concerns for the economy become more broad-based.

Pound Sterling was bid higher on Thursday, August 3 following the release of better-than-forecast service sector data.

The biggest data release of the week for Pound Sterling comes on Wednesday, July 5 in the form of UK services PMI figures.

Yes this is election week, but we will be watching the release of Service PMI data from IHS Markit and the CIPS at 09:30 on Monday.

UK economic data has been strong this week, but Pound Sterling has shown little inclination to react.

Foreign exchange markets will be watching the outcome of the release of UK service sector PMI data due for release at 09:30 on Wednesday, April 5.

Pound Sterling exchange rates will take a cue from the release of data concerning the all-important UK services sector on Friday, March 3.

This is the big one - the services PMI tends to have more of an impact on markets because the service sector accounts for more than 80% of the UK economy.