020 7898 0500Sterling was on the back foot against the US dollar yesterday but made gains against the euro as further clouds gathered over the UK economy.
There will be questions surrounding the momentum of growth in the second half of 2017, and those could hinder the prospect of an interest rate hike later in the year. The economic release that pointed towards a loss of momentum was the service sector PMI. The headline figure edged to a four-month low of 53.4 in June from 53.8 in May, just shy of the forecast 53.5.
A figure above 50 indicates growth. However, breaking down the number will be more of a concern as business expectations sank to their weakest level in a year.
There’s no major economic data released in the UK today but we could still see some volatile price action as the markets decipher the minutes from the last US FOMC meeting.
