Losses for the Pound Sterling were extended in London trade where Sterling hit a 2-week trough versus the greenback. The Pound is being pressured on two fronts; economic data and expectations that the Bank of England is going to shift to a decidedly looser monetary policy. The Bank of England's Mark Carney yesterday cautioned investors that the impending Brexit as well as the ongoing global trade disputes are weighing on the UK economy and compelling the Monetary Policy Committee to be prepared for a worsening outlook.
As reported at 11:00 am (GMT) in London, the GBP/USD was trading at $1.2571, down 0.1747%; the pair's range in today's trade is currently $1.2557 and $1.2600. The EUR/GBP was trading higher at 0.8980 Pence, a gain of 0.1908%; the pair had hit a peak of 0.89805 Pence while the low was at 0.89610 Pence.
UK Services Sector PMI Falls Unexpectedly
The latest economic data is only adding to the woes for Pound Sterling. The Markit PMI report for the UK Services sector was released a short while ago; the reading came in at 50.2, while analysts had been predicting that the numbers would remain unchanged from the May figures at 51.0. That news, coupled with the latest disappointing PMI reports on the manufacturing and constructions sectors, will also be key considerations of the Bank of England as they assess policy. Ben Broadbent, of the BoE's Monetary Policy Committee is due to speak later today and markets will want to see what kind of spin he puts on the latest data.