Talking Points
- The purchasing managers’ index for the UK service sector was weaker than expected in May.
- However, trading in the British Pound this week will be dominated by the upcoming UK elections.
- Check out the DailyFX Economic Calendar and see what live coverage of key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.
The purchasing managers’ index for the UK service sector and the composite PMI for the economy as a whole were both weaker than expected in February although the Bank of England is still likely to keep UK interest rates on hold for many months to come.
Trading in the British Pound will be dominated this week by opinion polls leading up to Thursday’s UK General Election and by the election itself, with the currency likely to strengthen if the ruling Conservatives look like winning but weaken on predictions of a Labour victory or a hung parliament with no majority for either party.
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at martin.essex@ig.com
Follow Martin on Twitter @MartinSEssex
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