Markit’s preliminary PMI for the UK has shown a sharp drop in the services sector, losing more than 10 points from 49.4 in December to 38.8 in January. The result is well below the expected 45 points, being the worst reading recorded since last May.
The manufacturing PMI has also disappointed, falling to 52.9 from 57.5, down from 54 points forecast. This is the lowest result in seven months, specifically since June 2020.
GBP / USD reaction
The British pound has reacted to the data with a fall of almost 25 pips that has taken it to new lows of two days at 1.3653.
With what had previously fallen this Friday, the pair has given up more than 80 pips from the daily high 1.3736 of the Asian open. At the time of writing, the GBP/USD it is trading above 1.3665, losing 0.53% daily.
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