GBP Falls to 31 Year Low After Weak Service PMI

Sterling tumbled to a 31-year low against the dollar and oil dropped below $50 a barrel as concerns deepened over the impact of Brexit on the UK economy.

Fears that a collapse in demand for new construction projects will panic spooked investors, depressing shares in housebuilders and property companies. Although the FTSE 100 was 0.4% higher, at 6547, the domestic-focused FTSE 250 mid-cap index tumbled more than 400 points, or 2.7%, to 15,680.

Adding to the gloom was a closely watched survey of the services sector, which showed a worse-than-expected reading of 52.3 in June, down from 53.5 in May. A reading above 50 indicates growth.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza