UK Markit Services PMI in April marked 58.7 vs. 57.6 as expected with employment component rising to 56 from 53.5 – its best level since October 2013
GBPUSD finally hit 1.70, its highest level since 2009 in late Europe trading session after UK Markit Services PMI data exceed expectation. This provide further evidence that UK economy continue to growth strongly.
Services is the most important component and contributed the most to the UK economy. Therefore, today UK Markit Services PMI data provides further fuel to the pound to advance further above 1.70. BoE is expected to be the first of the G7 central banks to raise rates.
OECD report also increased its projection for UK growth to 3.2% from 2.4% forecast earlier, while they lowered the growth rates for both China and US.
Cable is expected to retrace back to around 1.6920 zone to wait for Yellen speech today. The trend for GBPUSD is strongly up.
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