UK PMI Beat Prompts Bullish GBP/USD Reaction
- U.K. Services and Composite PMI Beat Estimates
- British Pound Rises Against US Dollar Following Data Release
- BOE Dissent on Monetary Policy Favors Bullish GBP/USD Outlook
Service-sector activity rose as U.K. Services PMI came in at 58.6 in May, beating estimates calling for a print of 58.2. Markit cites firmer market conditions for the uptick as service providers increased their own charges. Notably, competitive pressures continue to keep a lid on output price inflation in May.
The British Pound rose against the US Dollar on the data release, but the move may be limited as it has limited implications on monetary policy. Traders may decide to wait for the Bank of Englandinterest rate decision and related comments on monetary policy for a broader outlook on the single-currency.
From a technical perspective, DailyFX Technical Strategist Jamie Seattele says GBP/USD is bearish below 1.6900. “GBPUSD broke the line that extends off of the November and February lows, and the development is the clearest signal yet that an important top is in place.”
GBP/USD 5-minute – using FXCM Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.