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Sterling recovers on strong UK PMI
Sterling rises against major peers in London session on Wednesday Following upbeat preliminary data from the S&P Global/CIPS Purchasing Managers’ Index (PMI) for July. The composite PMI came in higher at 52.7 than estimates of 52.6 and the previous release of 52.3 due to increased activity in the manufacturing and services sectors. The manufacturing and services PMI expanded to 51.8 and 52.4 respectively, beating their previous releases.
Commenting on the PMI data, Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “The first post-election business survey paints a welcoming picture for the new government, with firms in both manufacturing and services growing more optimistic about the future, reporting renewed demand and hiring more staff. Meanwhile, prices rose at their slowest pace in three-and-a-half years, raising the prospect of a summer rate cut.” Read more…
GBP/USD Forecast: Sterling struggles to capitalize on positive PMI data
After closing in negative territory on Tuesday, The GBP/USD pair continued to decline until it reached its lowest level since July 11 at the 1.2880 level. Although the pair managed to rally slightly during the European session, it seems to be struggling to gain recovery momentum.
Data from the UK showed the S&P Global/CIPS Composite Purchasing Managers’ Index (PMI) improved to 52.7 in July from 52.3 in June, highlighting the continued expansion in private sector business activity at an accelerating pace. Read more…
