#EconomicComment
#GBPUSD fell on Friday to 1.2640, its lowest in 5 weeks. A streak of soft data contributed to the decline, raising chances for rate cuts soon.
This week, data on the brakes on the inflation rate to 2% y/y, the Bank of England's target, were released. Earlier, industrial production was reported to have fallen by 0.9% m/m and 0.4% y/y, continuing almost two years of stagnation.
However, contrasting with these figures, the Flash PMI Friday exceeded expectations and marked an acceleration in growth, with the index rising from 51.2 to 51.4.
This positivity was more than offset by a peck on the nose in the services sector. Contrary to the expected rise from 52.9 to 53.2, the PMI index collapsed to 51.2, the lowest since November.
The reading reinforced the divergence in UK and US indicators, providing a fundamental reason for the pound's decline against the dollar. The BoE should have a higher degree of readiness to support the economy in contrast to the Fed's wait-and-see approach.
#GBPUSD fell on Friday to 1.2640, its lowest in 5 weeks. A streak of soft data contributed to the decline, raising chances for rate cuts soon.
This week, data on the brakes on the inflation rate to 2% y/y, the Bank of England's target, were released. Earlier, industrial production was reported to have fallen by 0.9% m/m and 0.4% y/y, continuing almost two years of stagnation.
However, contrasting with these figures, the Flash PMI Friday exceeded expectations and marked an acceleration in growth, with the index rising from 51.2 to 51.4.
This positivity was more than offset by a peck on the nose in the services sector. Contrary to the expected rise from 52.9 to 53.2, the PMI index collapsed to 51.2, the lowest since November.
The reading reinforced the divergence in UK and US indicators, providing a fundamental reason for the pound's decline against the dollar. The BoE should have a higher degree of readiness to support the economy in contrast to the Fed's wait-and-see approach.
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#EconomicComment
#GBPUSD fell on Friday to 1.2640, its lowest in 5 weeks. A streak of soft data contributed to the decline, raising chances for rate cuts soon.
This week, data on the brakes on the inflation rate to 2% y/y, the Bank of England's target, were released. Earlier, industrial production was reported to have fallen by 0.9% m/m and 0.4% y/y, continuing almost two years of stagnation.
However, contrasting with these figures, the Flash PMI Friday exceeded expectations and marked an acceleration in growth, with the index rising from 51.2 to 51.4.
This positivity was more than offset by a peck on the nose in the services sector. Contrary to the expected rise from 52.9 to 53.2, the PMI index collapsed to 51.2, the lowest since November.
The reading reinforced the divergence in UK and US indicators, providing a fundamental reason for the pound's decline against the dollar. The BoE should have a higher degree of readiness to support the economy in contrast to the Fed's wait-and-see approach.
#GBPUSD fell on Friday to 1.2640, its lowest in 5 weeks. A streak of soft data contributed to the decline, raising chances for rate cuts soon.
This week, data on the brakes on the inflation rate to 2% y/y, the Bank of England's target, were released. Earlier, industrial production was reported to have fallen by 0.9% m/m and 0.4% y/y, continuing almost two years of stagnation.
However, contrasting with these figures, the Flash PMI Friday exceeded expectations and marked an acceleration in growth, with the index rising from 51.2 to 51.4.
This positivity was more than offset by a peck on the nose in the services sector. Contrary to the expected rise from 52.9 to 53.2, the PMI index collapsed to 51.2, the lowest since November.
The reading reinforced the divergence in UK and US indicators, providing a fundamental reason for the pound's decline against the dollar. The BoE should have a higher degree of readiness to support the economy in contrast to the Fed's wait-and-see approach.
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