3 June AtoZForex, Vilnius — The UK service sector growth weakened in April, hence for this month the markets expected only a slight improvement. Yet, the UK Services PMI bounced back from the three-year-low of last month.
– The UK Services PMI bounced back up to 53.5, a better than expected index.
– A brief improvement was expected by the analysts for the May figure, the markets predicted a 52.5 reading.
– In the previous month, the UK Services PMI came in at 52.3.
The better than expected UK Services PMI for May, increased the optimism upon the British economy, considering that the UK Services PMI represents about 80% of the GDP. In overall, an index of above 50.0 indicates that the industry is expanding. Whereas, an index below 50.0 signifies that the sector is contracting.
GBPUSD falls and rises! What’s next?
As AtoZForex reported earlier today, the pound is setting up for a fall. Especially, having dipped sharply this week so far, the GBPUSD is expected to fall further as both currencies await key data.
On the drop of the UK Services PMI, GBPUSD indeed plunged. The major pair dropped to around 1.4422, yet the pair bounced back and is currently trading around 1.4431. For the remaining of the day, GBPUSD is waiting for the NFP figures. Check these analyses of industry experts to gain a solid overview.
Think we missed something? Let us know down in the comments section.