Falling Services PMI Makes Sterling Weaker

The Great Britain pound was relatively flat against the US dollar and the euro today after yesterday’s drop, but continued to fall against the Japanese yen. The losses were caused by the decline of the services’ index.

The Markit/CIPS UK Services Purchasing Managers’ Index adjusted for seasonal factors fell to 60.0 in November, the five-month low, from October’s multi-year high of 62.5. Analysts expected a decrease to just 62.1. The gauge was still at a historically high level.

The Bank of England conducts its monetary policy meeting today. The gathering promises to be uneventful. The European Central Bank also holds a policy gathering today and it will be interesting to hear what policy makers have to say after last month’s surprising interest rate cut.

GBP/USD traded at 1.6380 as of 2:01 GMT today after opening at 1.63823. GBP/JPY ticked down from 167.67 to 167.52. EUR/GBP traded at about 0.8292 after it opened at 0.8295.

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