Currency – pound limit on its gains, the PMI services still weighs

© Reuters. The book limit its gains, the PMI services still weighs

The book to limit its losses on Tuesday after falling on the negotiations for the Brexit, but remains on the defensive after figures have shown that the growth of the services sector in England had slowed in November.

The GBP/USD is at 1.3423 at 04:57 AM ET (09:57 AM GMT), after touching 1.3373 earlier.

The pound is under pressure after England and the European Union have failed in reaching an agreement for the Brexit Monday.

The pound found support following the info according to which the british Prime minister, Theresa May, could return to Brussels before the end of the week in the hope of reaching an agreement on the border in ireland.

While the maturity of march 2019 approach, May is under pressure to start by the end of the year discussions on its future business relationships so as to remove the uncertainty for companies doing business in the EU.

But the pound remained under pressure after data showed that the services sector in the Uk has lost ground in November, while inflationary pressures have continued to increase.

In a report, Markit, a research specialist said that its PMI index for services fell to 53.8 last month from 55.6 in October.

The report also showed that the prices charged by the companies jumped to the highest level since February 2008 last month, adding to concerns that a compression of household spending.

The book limit its losses against the euro, with EUR/GBP to 0.8828 after touching 0.8867.

In the euro zone, data on Tuesday showed that the economy has maintained good momentum in November, with the composite PMI of the euro area, which measures activity in manufacturing and services, rising from 56.0 in October to 57.5. It was the highest reading since April 2011.

Like this post? Please share to your friends:
Leave a Reply