Decline of UK Service Industries Hurts Pound

4:15 AM // 0 comments // samavadey // Category: Forex

Great Britain poundThe Great Britain pound tumbled today as the Services Purchasing Managers’ Index slumped in August, confirming a bad state of Britain’s economy and reducing attractiveness of the UK currency as a haven from problems in continental Europe.

The Services PMI dropped from 55.4 in July to 51.1 in August, only a little above the level of 50.0 that indicates no change. The report said:

    Respondents primarily blaming a weaker underlying trend in new business and general economic uncertainty. There were a few reports that the rioting and public disorder seen in some areas of the country in early August had adversely affected activity.

GBP/USD slumped from 1.6150 to 1.6076, following the jump to 1.6185, and GBP/JPY tumbled from 124.20 to 123.64 today as of 14:01 GMT.

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Earlier News About the Great Britain Pound:

    * Pound Profits from Terrible US Payrolls (2011-09-02)
    * Forecast: Fundamentals Aren't Favorable for Pound (2011-08-30)
    * Pound Goes Down as UK Economy Slows (2011-08-26)
    * GBP Falls vs. EUR with Consumer Confidence & Retail Sales (2011-08-25)
    * Pound Rises as Inflation Accelerates (2011-08-16)