Services PMI Boosts Pound in Short-Term, Outlook Remains Negative
The report about the UK Services PMI showed an unexpected growth, bolstering the Great Britain pound, but it can’t be considered completely positive as the data showed an underlying weakness of Britain’s economy.
The Markit/CIPS UK Services PMI advanced from 53.8 in May to 53.9 in June, while it was expected to drop to 53.6. Yet the report stated that the rate of expansion was below trend and the growth of new businesses slowed last month. What’s even more important the job creation “remained minimal” and the business confidence dropped to the lowest level since October.
GBP/USD climbed from 1.6080 to 1.6116 today as of 10:20 GMT following the drop to 1.5989. GBP/JPY rose from 129.87 to 130.71.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
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Earlier News About the Great Britain Pound:
- Slower Manufacturing Growth Makes Sterling Weaker (2011-07-01)
- Sterling Trades Lower with Widening Current Account Deficit (2011-06-28)
- Pound Regains Strength After Week of Losses (2011-06-27)
- UK Economic Outlook Causes Weakness of Pound (2011-06-24)
- Pound Falls as Retail Sales Decline (2011-06-23)
2 Comments
Dear sir/mam,
I hv bought GBP/INR 500 lots from last 3 weeks.. now its having huge loss, plz suggest should I hold it or book loss? plz also mention time frame.
Thanks
Shweta Agnihotri
Delhi, India.
GBP/INR looks to be in a downtrend, but currently an upward correction is expected. If you can tolerate more potential loss and can wait 1-2 weeks, you could wait for a slightly better price to close your position at about 71.60.