Forex
Home›Forex›Major Pairs›Pound weakens to near 1.3250 as US PMIs outpace UK data
Pound weakens to near 1.3250 as US PMIs outpace UK data
US flash services PMI rose to 58.7, while UK services PMI eased to 51.7, widening the growth gap as investors favor higher US rates.
FXStreet reports that flash PMI data pushed the US dollar higher versus the British pound, with US business activity expanding at its fastest pace since July 2021 while UK services growth slowed.
According to the release, US services PMI came in at 58.7 versus a 56 forecast, while UK services PMI was 51.7 versus 52, a comparison that the outlet said was nine times the size of the British miss.
The pound was last seen just under 1.3250, its lowest level since early July, as the market continues to look to interest-rate differentials, with the Fed having lifted its rate to 3.75% to 4.00% on September 16 versus the Bank of England holding at 3.75%.
FXStreet added that the BoE held the Bank Rate in a 6-3 vote on September 17, with UK pricing pressure rising as services firms raised prices at the fastest pace in four months, and it outlined upcoming catalysts including UK GfK consumer confidence and US jobless claims, new home sales, durable goods and University of Michigan sentiment.