The Sterling lost some of its value on Wednesday, but this came after very strong gains early in the week and before. The Halifax HPI did better than anticipated with an outcome of 0.6% compared to the expected minus -0.4% outcome. However, the Services PMI did disappoint investors as it turned in a reading of 53.1 compared to the estimated mark of 54.5. Upon the Services PMI, investors were given a reminder that economic data from the U.K. remains a mixed bag and that even though the government has undertaken tough austerity measures, that the promise of growth may go unfulfilled. Today the Bank of England will announce their monetary policy decision, but no surprises are expected. Tomorrow the Manufacturing Production statistics will be published. The GBP has done well for the past month and traders should expect to see movement based on risk appetite today and tomorrow.
Written by bforex.com