Trade Desk Thoughts - U.K. Services PMI

U.K. Services PMI Actual 46.0, Expected 48.0, Previous 49.2

Release Explanation: Measures the activity level of Purchase Managers, they are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth. As an indicator of economic performance the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports.

Trade Desk Thoughts: The U.K. Service PMI came in at 46.0, much worse than market expectations. The release shows the service side of the economy has contracted for more than five months, hitting now a record low for the time being.

Forex Technical Reaction: The pound fell 15 pips after the report hit the wires. Previously, the pound gained 70 pips against the dollar and moved flat against the euro.

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