Sterling and Euro News:
- UK services PMI report highlights incoming new business at a 2-year low.
- Talk of a solution to the Irish border impasse now refuted by the EU.
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Sterling Falls After Disappointing UK Services PMI Print
The latest look at the UK economy by IHS Markit showed that Brexit concerns are starting to bite harder with the services data signaling the slowest rate of business activity expansion since March and the second lowest reading since July 2016. The new business reading was the weakest recorded since July 2016.
Chris Williamson, Chief Business Economist at IHS Markit, which compiles the survey wrote: “The disappointing server sector numbers bring mounting evidence that Brexit worries are taking an increasing toll on the economy. Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP.”
The UK data release was not the only weaker-than-expected report this morning as the Euro-Zone Sentix Investor Confidence release slipped to 8.8 compared to expectations of 9.8 and a prior release of 11.4.
The latest Brexit remains confusing with UK reports Sunday that an agreement is near, while subsequent news out of the EU still points to problems remaining over the Irish border. The British Pound pushed higher overnight and in very early morning trade before slipping back on EU commentary and the poor PMI figures.
Recent Sterling (GBP) Reports:
EURGBP Daily Price Chart (March - November 5, 2018)
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