Markit’s services PMI jumped to 56.9 points, indicating strong growth. It was expected to tick lower from the high of 54.9 to 54.6 points. This is the biggest sector in the UK.
GBP/USD was trading off the lows before the publication, at 1.5160 and it is now trading just under 1.52, which also serves as resistance. Update: cable is above 1.52.
The strong number means there is a better chance of seeing growth in the UK, and that a fresh recession is not that close. If Mark Carney was thinking of introducing QE in his decision tomorrow, the chances look even smaller now.
The manufacturing PMI dropped to 50.1 points, exactly as expected. Construction PMI ticked up from 50.8 to 51, with expectations for a rise to 51.3 points.
GBP/USD was hit by a general risk aversion mood, coming from a political crisis in Portugal, worries about Chinese growth and uncertainty about the next moves of the US economy.
Resistance is found at 1.52. For more lines, see the GBP/USD forecast.
