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UK Services slighty above expectations

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• October 4, 2017
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The PMI showed growth in services activity unexpectedly sped up a little last month, compensating for weaker readings in the manufacturing and construction industries reported earlier in the week.

Taking the three sector surveys together, Britain’s economy probably expanded at a quarterly rate of around 0.3 percent in the July-September period, matching its second-quarter performance, survey compiler IHS Markit said.

The dollar pulled away from seven-week highs today, amid speculation that U.S. President Donald Trump’s choice for the next head of the Federal Reserve could be a less hawkish candidate than had previously been expected.

The greenback had reached its highest since mid-August against a basket of major currencies on Tuesday, driven by stronger economic data, as well as expectations for another Fed rate hike by the end of the year and a revival of the so-called “Trumpflation trade”.

The Euro has been under pressure this week by worries over Catalonia, after a violence-marred independence referendum. The common currency appeared largely unruffled by Catalonia’s leader, Carles Puigdemont, saying on Tuesday that the region would declare independence in a matter of days.