The first sign of Brexit doesn’t look so good - Forex News by FX Leaders

The first sign of Brexit doesn’t look so good

Posted Friday, July 22, 2016 by
Skerdian Meta • 1 min read

The UK services and manufacturing data was released a while ago. This was a special release because the July economic data is usually released in August. Markit, which is the firm that carries out the survey said that they would issue a flash PMI report on services and manufacturing to provide clarity on the Brexit vote and on the impact it has had so far on the British economy. They also said that this was a response from the demand of its users. 

GBP/USD is about 180 pips lower than before the economic data was released

So, the numbers were released and they didn´t look good at all. The manufacturing PMI came out better than expected but about three points below the previous month which puts this sector well in contraction. The services PMI came out even worse, the number was expected at 48.9 but it came at 47.4. Below 50 points means that the sector is in contraction. What´s disturbing is that the service sector was the leading one in the UK during the recovery and with this sector in trouble we all know where the UK economy is headed. The Pound has tumbled nearly 200 pips down.  

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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