6 Jan 2014
GBP/USD rebounds from session lows after PMI expectations miss
FXstreet.com (London) - GBP/USD dropped sharply after a miss in UK Markit/Cips Services PMI numbers. The pair is currently trading at USD1.6349 after rebounding from session lows.
UK misses expectations despite robust expansion
Despite showing a strong rate of expansion, the index missed expectations of a slight gain on November’s print of 60.0, with the seasonally-adjusted headline business activity index coming in at 58.8, a six-month low.
The Markit report said that UK service sector continued to expand strongly as 2013 came to an end, with activity, new business and employment all again rising at marked rates. It indicated that confidence among service providers was at its highest in nearly four years.
Indication of potential upside wage pressure
The numbers also gave positive news for UK wages, which have continued to slump in real terms, despite a strongly improving UK macro picture. There was further evidence of capacity pressures in December, with backlogs of work rising for a ninth successive month. Many companies responded to rising workloads by adding to their payroll numbers at a marked pace. Employment rose for a twelfth successive month.
GBP/USD rebounds from lows
The pair is currently trading at USD1.6349 after rebounding from a session low of 1.6338. The pair had seen choppy trading before the data release, twice. bouncing off highs at 1.6380. The pair is currently down 0.31 percent on the open of USD1.6408.
UK misses expectations despite robust expansion
Despite showing a strong rate of expansion, the index missed expectations of a slight gain on November’s print of 60.0, with the seasonally-adjusted headline business activity index coming in at 58.8, a six-month low.
The Markit report said that UK service sector continued to expand strongly as 2013 came to an end, with activity, new business and employment all again rising at marked rates. It indicated that confidence among service providers was at its highest in nearly four years.
Indication of potential upside wage pressure
The numbers also gave positive news for UK wages, which have continued to slump in real terms, despite a strongly improving UK macro picture. There was further evidence of capacity pressures in December, with backlogs of work rising for a ninth successive month. Many companies responded to rising workloads by adding to their payroll numbers at a marked pace. Employment rose for a twelfth successive month.
GBP/USD rebounds from lows
The pair is currently trading at USD1.6349 after rebounding from a session low of 1.6338. The pair had seen choppy trading before the data release, twice. bouncing off highs at 1.6380. The pair is currently down 0.31 percent on the open of USD1.6408.