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Services PMI surprise lifts pound from its lows


At 56.2 this morning’s services reading continued the trend seen this week of the UK’s PMIs far exceeding expectations; that figure is also a 17 month peak, though analysts were quick to point out they don’t see this positive momentum being maintained for much longer. Regardless, the news was more a boost to the pound than the FTSE, helping the former ease its losses against the dollar and euro while taking the latter away from its record highs. The UK index hasn’t fallen too far away from its peak, however, largely thanks to the Persimmon-driven gains seen in the housing sector.

After a negative start the Eurozone indices have managed to crawl back to where they started the day. This recovery seems to be down to the euro seeing its own gains dissipate; the currency is now only up 0.3% after having taken nearly 1% off of sterling earlier in the morning.

Looking to the US open and the Dow Jones is set for a flat start to the session, the futures pointing having the index unchanged at 19930. Of course, that is still achingly, frustratingly close to 20000, a level if could perhaps reach if this afternoon’s pair of services PMIs come in better than expected –the Markit reading is forecast at 53.4, while the ISM number is set to drop from 57.2 to 56.6 month-on-month.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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