Services PMI

The Pound to Dollar exchange rate rebounded from earlier losses late this week but was hampered again in thin holiday trade on Friday after the May non-farm payrolls and Services PMI reports offered an incitement to a Federal Reserve (Fed) that appeared to become more hawkish in recent days. 

Data out of the UK economy for November came in well ahead of expectation, even if they do confirm the economy likely shrank in the same month that England went into a second lockdown.

A survey of the UK economy in October points to a rapid slowdown in activity in the wake of fresh regional lockdowns.

A survey of the UK economy covering the September period showed the rebound continues apace, even if it had slowed since August and was a little softer than market consensus had been expecting.

UK retail sales surged in June while IHS Markit PMI surveys suggested that manufacturing and services companies operating in the troubled UK economy pulled ahead of the Eurozone rivals in July, although economists have cautioned that the retail data likely overstates the broader economic recovery.  

The UK economy appears to have reached a nadir in June, according to flash PMI data released on Tuesday that came in well ahead of analyst expectations.

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.