Pound Rebounds As U.K. Services PMI Beats Forecast
(RTTNews) - The pound erased its early losses against its major counterparts in the European session on Tuesday, as U.K. service sector activity rose more than expected in August.
Flash survey results from S&P Global showed that the services Purchasing Managers' Index came in at 52.5 in August, beating expectations for a score of 52. The reading was 52.6 in July.
The improvement in the service sector is due to the greater amounts of new orders and optimism remained that customers would continue to buy throughout the year.
Eurozone business activity came in better than expectations in August, further underpinning the risk sentiment.
All eyes are on the Jackson Hole Symposium in Wyoming, where central bankers across the globe will update their views on inflation and policy outlook.
The pound recovered to 161.80 against the yen and 1.1783 against the dollar, from an early 1-week low of 160.80 and a 2-1/2-year low of 1.1717, respectively. The currency may target resistance around 163.00 against the yen and 1.23 against the dollar.
The pound climbed to a 4-day high of 1.1384 against the franc and a 5-day high of 0.8482 against the euro, up from its early lows of 1.1303 and 0.8529, respectively. The pound is seen locating resistance around 1.21 against the franc and 0.82 against the euro.
Looking ahead, U.S. new home sales for July and Eurozone consumer sentiment index for August are scheduled for release in the New York session.
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