Sterling Dips After Release of Markit Services PMI

The Great Britain pound dipped after the release of the report about the services sector even though the indicator has improved. Analysts explain the poor reaction of the currency by the fact that expansion of the service industries remains sluggish even after the acceleration.

The Markit/CIPS UK Services PMI rose to 53.7 in March, from February’s 35-month low of 52.7. Nevertheless, the quarterly growth was slowest since the first three months of 2013. The situation reminds yesterday’s report about construction, which also was not particularly optimistic despite the improvement, but the sterling reacted totally differently today, falling whereas yesterday it rallied.

GBP/USD dropped from 1.4261 to 1.4186 as of 13:22 GMT today. EUR/GBP gained from 0.7984 to 0.8015.

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