The drop in PMI services for June was not related to the Eurozone alone. According to the data released after 10:30 am, the UK indicator also depreciated, with the index standing at 53.40 (analysts forecast at 53.50).
Lows from May levels and high index volatility
Looking at the chart below, you can see clearly that the PMI service publication for UK is characterized by high volatility from month to month. Decline in relation to May was 0.4 pts. In the initial reaction GBP/USD tested 1.2900, then rebounded from significant support.
“The slowdown in the services sector complements the unsatisfactory June results in the remaining industries. While results are consistent with the GDP trend, there is a lot of evidence that the UK economy is heading for the third declining quarter of 2017 “-commented chief economist IHS Markit, Chris Williamson.
The cable after data was down at its lowest level since June 28, when price dynamically breached above 1.2900.