Markit’s forward looking PMIs provide good news to the UK economy. The largest sector, services, is seeing accelerated activity with 57.1 points. The employment component is up to 57.1 points, another good sign.
GBP/USD is ticking up to 1.5180.
The purchasing managers’ PMI for the services sector in the UK was expected to edge up from 55.8 to 56.6 points in January. The services sector is by far the largest in the US.
GBP/USD traded relatively steadily at around 1.5160.
This is the last of 3 PMIs. The previous two, for the manufacturing and the construction sectors came out better than expected.
Cable managed to escape the 1.50 level thanks to stronger PMIs and also thanks to a big squeeze in the US dollar.
The Bank of England convenes tomorrow and no change in policy is expected.
More: GBP/USD: 1.38 is the new target; staying short – Morgan Stanley
