PMI Employment News Sends Pound Lower
The Pound Sterling edged lower against the US Dollar and the Euro during Tuesday trade in London after the latest PMI report dampened sentiment. The Chartered Institute of Purchasing & Supply, in coordination with Markit Surveys, reported that the January PMI report for the all-important UK Services Sector fell to 50.9 unexpectedly, well off the 51.0 reading that had been predicted and below the previous reading of 51.2. Moreover, the survey indicated that the sector had reported job reductions, an event not recorded since 2013. The weakening of the labor market is one more uncertainty weighing on Pound sentiment, especially in the run up to the Brexit.
As reported at 10:58 am (GMT) in London, the GBP/USD was trading at $1.3014, down 0.1978% and just a few pips off the session trough of $1.3011. The EUR/GBP was trading at 0.8775 Pence, up 0.09%; the pair has ranged from a session high of 0.87780 Pence to a low of 0.87503 Pence.
Eurozone PMI Upbeat
In the Eurozone, the PMI reports for the Services Sector, as well as the Composite PMI, were both better than expected at 51.2 and 51.0; up from the previous respective readings of 50.8 and 51.1 (which was revised from 50.7). The EU Manufacturing Sector PMI was released last Friday and hit analysts' predictions with a flat reading of 50.5. The EUR/USD was trading at $1.1417, down 0.16%; the pair has ranged from $1.14116 to $1.14440.