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6 Jan 2015
Disappointing services PMI spoils GBP sentiment further – KBC
FXStreet (Barcelona) - The KBC Bank Research Team shares that Cable is testing the correction low in the 1.5170 region after UK services PMI fell from 58.6 to 55.8.
Key Quotes
“Yesterday, sterling was fighting an uphill battle as the political debate on Brexit heated up during the weekend. Today, sterling remained in the defensive, but the pressure was lower than yesterday.”
“(Currency) investors kept a close eye on the UK services PMI as domestic demand and services were an important factor behind the UK recovery. At the end of last week, the manufacturing PMI and the index from the construction sector showed a loss of momentum at the end 2014. The services PMI confirmed this picture. The index declined from 58.6 to 55.8 (58.5 was expected). Cable dropped to the 1.5175 area after the publication of the report and struggled to rebound further out in the session.”
“The pair is testing the correction low in the 1.5170 area at the momentum of writing.”
“EUR/GBP ‘spiked’ to the 0.7850 area after the PMI and settled in a sideways range roughly between 0.7825/50. Sterling still isn’t in good shape, but the damage could have been even worse.”
Key Quotes
“Yesterday, sterling was fighting an uphill battle as the political debate on Brexit heated up during the weekend. Today, sterling remained in the defensive, but the pressure was lower than yesterday.”
“(Currency) investors kept a close eye on the UK services PMI as domestic demand and services were an important factor behind the UK recovery. At the end of last week, the manufacturing PMI and the index from the construction sector showed a loss of momentum at the end 2014. The services PMI confirmed this picture. The index declined from 58.6 to 55.8 (58.5 was expected). Cable dropped to the 1.5175 area after the publication of the report and struggled to rebound further out in the session.”
“The pair is testing the correction low in the 1.5170 area at the momentum of writing.”
“EUR/GBP ‘spiked’ to the 0.7850 area after the PMI and settled in a sideways range roughly between 0.7825/50. Sterling still isn’t in good shape, but the damage could have been even worse.”