Later today at 5:30pm , most traders will focus on the announcement of UK private sector PMI data for November. Market concerns about a prolonged UK economic recession could trigger increased sensitivity to data figures. Typically, the Services PMI is likely to have a major impact on the GBP/USD pair.
The UK services sector accounts for more than 70% of the UK economy. An unexpected drop in the Services PMI could signal a recession in the UK economy. In addition, more flexible price pressures are able to control inflationary pressures that are driven by demand. The downward trend in inflationary pressures may support the Bank of England's (BOE) talk of lowering interest rates.
Economists expect the UK Manufacturing PMI to increase from 44.8 to 45.0 for the month. Significantly, economists expect the Services PMI to remain unchanged at 49.5.
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