An unexpectedly improved reading of the UK’s January PMI for the services sector helped to boost the Pound Sterling during London trading on Wednesday. Earlier today, Markit reported a reading of 53.9 against analysts’ expectations of a flat reading of 52.9. Yesterday, Markit had reported an upbeat PMI for the construction sector which helped to lift the Pound. Nonetheless, the Pound remains close to the recently struck 6-week trough when Boris Johnson’s comments on compromises for EU rules and regulations weighed on sentiment. Investors’ concerns that the fiscal expansion in the UK won’t be as large as anticipated is also weighing on the currency.
As of 11:16 am in London, the GBP/USD was trading higher at $1.3051, a gain of 0.1704% and dropping back from the session peak of $1.30706. The EUR/GBP was lower at 0.8444 Pence, down 0.4036%; the pair ranged from 0.84329 Pence to 0.84845 Pence in today’s session.
News that China is working feverishly to address the outbreak of the Coronavirus has helped to shift sentiment for risk-based assets. Concerns that the Chinese economy could falter significantly as a result of the widespread virus were alleviated when the People’s Bank of China this week moved to inject some 1.7 trillion Chinese Yuan into the economy in an effort to soften the potential blowback. As a result, the Aussie received a boost with the AUD/USD trading higher at $0.6766, a gain of 0.4006%. The NZD/USD is currently lower at $0.6493, sliding from the session peak of $0.65039.