UK Services Growth Casts Doubt on BoE Rate Cut Prospects – PMI

Britain’s services sector grew more strongly than expected in September, a survey showed, adding to doubts about the need for a new Bank of England interest rate cut next month to cushion the Brexit vote impact.

The Markit/CIPS Purchasing Managers’ Index (PMI) for the dominant services sector slowed slightly to 52.6 in September from 52.9 in August, when it staged the biggest one-month gain in the survey’s 20-year history.

But the reading was comfortably higher than the median forecast of 52.0 in a Reuters poll of economists and Markit said the overall performance of the economy last month looked like it was the strongest since January.

Reuters

APAC FX: USD Reigns Supreme as Pound and Gold Fold.

US Data Eyed as Oil and European Yields Surge

Unveiling a New Vision for Britain, May Demands a Fairer Society

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam