Pound Rebounds As U.K. Services PMI Beats Forecast
August 23 2022 - 4:31AM
RTTF2
The pound erased its early losses against its major counterparts
in the European session on Tuesday, as U.K. service sector activity
rose more than expected in August.
Flash survey results from S&P Global showed that the
services Purchasing Managers' Index came in at 52.5 in August,
beating expectations for a score of 52. The reading was 52.6 in
July.
The improvement in the service sector is due to the greater
amounts of new orders and optimism remained that customers would
continue to buy throughout the year.
Eurozone business activity came in better than expectations in
August, further underpinning the risk sentiment.
All eyes are on the Jackson Hole Symposium in Wyoming, where
central bankers across the globe will update their views on
inflation and policy outlook.
The pound recovered to 161.80 against the yen and 1.1783 against
the dollar, from an early 1-week low of 160.80 and a 2-1/2-year low
of 1.1717, respectively. The currency may target resistance around
163.00 against the yen and 1.23 against the dollar.
The pound climbed to a 4-day high of 1.1384 against the franc
and a 5-day high of 0.8482 against the euro, up from its early lows
of 1.1303 and 0.8529, respectively. The pound is seen locating
resistance around 1.21 against the franc and 0.82 against the
euro.
Looking ahead, U.S. new home sales for July and Eurozone
consumer sentiment index for August are scheduled for release in
the New York session.
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