Weak UK services PMI pushes the pound lower

<p>The Euro has started today the weaker of the bunch, as the USD gains on a vulnerable currency and capitalises on the uncertainty in Greece. It is […]</p>

The Euro has started today the weaker of the bunch, as the USD gains on a vulnerable currency and capitalises on the uncertainty in Greece. It is currently making new lows now around 1.1120, with slightly weaker Eurozone PMI data already out this morning. Later on, the EU retail sales will be out with an expected drop to 0.2% from 0.3% which is not likely to help the Euro’s cause.

The main release today will be from the US as the ADP data is set to be released at an expected 220k, which may help guide some traders to rethinking the Non-farm payrolls data on Friday. It will also be interesting to see if the US weather has played its part in any of the data yet.

In the UK, the Services PMI dipped to 56.7 from 57.5. This has had a muted effect on the GBP as we trade just below the 1.5350 level.

The BOC is set to announce its overnight rates, with no changes expected. But with lots of central banks cutting rates this year already, this is one to be aware of.



 1.1150-1.1120-1.1080   | Resistance 1.1210-1.1250-1.1280



119.25-118.90-118.40 | Resistance 120.20-120.70-121.10



1.5340-1.5315-1.5285  | Resistance 1.5400-1.5430-1.5455

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.