British Pound Sank on Weak PMI Data

Market Reviews

The British pound fell to new session lows against the US dollar after the release of weak data on business activity in the services sector of the UK. The activity of the British services sector in January grew at the slowest pace for almost a year and a half. The PMI services fell more than expected, to 53.0 in January from 54.2 in December. The forecast was at 54.1.

Euro is trading without a single momentum against the US dollar amid mixed data on the Eurozone, while investors are waiting for ECB President Mario Draghi's speech today in the European Parliament. Data on business activity in the services sector of the Eurozone contributed to the growth of the euro to new session highs, but later released weak data on retail sales and investors sentiment caused the pair to roll back.

In December, retail sales in the euro area declined after the recovery a month ago. The volume of retail sales fell by 1.1% in December, in contrast to the growth of 2% in November. Eurozone Sentix investor confidence unexpectedly fell to 31.9 from 32.9 in January. It was expected that the estimate would be 34.5. Eurozone Services PMI rose to 58.0 in January.