About 10:30 we met again this week’s reading from institute IHS Markit, this time index for purchase managers (PMI) in the service sector. According to the report industry in the UK recorded a strong end of 2016 year and its growth was on 17-month peaks.
Index beat forecasts and results of the November
In November PMI Services placed at level of 55,20. Analysts polled by Bloomberg assumed that in December will lower gently to 54,70. The final result, however, raised expectations and reached 56.20.
According to David Noble, one of the commanders of the institute CIPS involved in creating the report: “Beating all predictions, services sector ends the year at the highest levels in 2016 – all thanks to the employment levels and the number of traders entering the market. As a result, the main index was at the highest levels since mid-2015 “
Pound gains after data
As a result of the publication popular cable moved on the M5 chart more than 30 pips up. Lows at 1.23140 area of the first hours of the session stopped further appreciation:
Reaction on EURGBP was comparable. Quotations at this moment are struggling with 50% of the abolition of the growth of the last twenty-four hours and the first resistance, determined on the basis of pivot points. If the zone is defeated we can expect further strengthening of the pound against the euro.