UK Final Services PMI revised sharply higher to 59.1 in October, GBP/USD tests highs

UK Final Services PMI upwardly revised to 59.1 in October.
GBP/USD holds higher ground above 1.3600 on the UK data.
Eyes on US ADP, ISM Services PMI ahead of the critical Fed decision.

Dhwani Mehta FXStreet

The UK services sector activity expanded more than expected in October, the final report from IHS Markit confirmed this Wednesday.

The seasonally adjusted IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) was revised sharply higher to 59.1 in October versus 58.0 expected and a 58.0 – last month’s flash reading.

Key points

Fastest rise in business activity for three months.

Cost inflation accelerates to its strongest in over 25 years.

Average prices charged increase at survey-record pace.

Tim Moore, Economics Director at IHS Markit, which compiles the survey

“Looser international travel restrictions and greater domestic mobility helped to lift the UK service sector recovery out of its recent malaise in October. Business activity expanded at the fastest pace since July, driven by the first acceleration in new order growth for five months. The latest survey also pointed to the best month for export sales since June 2018.”

FX implications

GBP/USD is holding onto its intraday gains on the upbeat UK data. The spot is trading at 1.3628, up 0.14% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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