Tuesday, 6 September 2011

Decline of UK Service Industries Hurts Pound

Great Britain pound fell today as Services Purchasing Managers' Index fell in August, confirming a poor state of the British economy and reduce the attractiveness of the UK currency as a refuge from the problems in continental Europe .

The services PMI fell from 55.4 in July to 51.1 in August, only slightly above the 50.0 level that indicates no change. The report says:

Respondents mostly blame a weaker underlying trend in new business and general economic uncertainty. There were some reports of riots and public disorder seen in some areas of the country in early August had negatively affected the activity.

GBP / USD fell from 1.6150 to 1.6076, after the jump to 1.6185 and GBP / JPY fell from 124.20 to 123.64 today from 14:01 GMT.

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