Preview – Sterling at a tipping point ahead of PMI release

From investica.co.uk

The UK services-sector PMI index is a key indicator of economic health and Sterling’s underlying performance will remain strongly correlated with this data. With the UK economic and political cycle entering a crucial phase during the third quarter with a Summer of discontent, this release could be a defining moment for third-quarter Sterling trends, especially if it is a weaker than expected figure. If the index drops to below the 52.0 level, then GBP/USD will weaken quickly towards 1.5910 and medium-term downward momentum will be firmly entrenched. Any figure above 54.0 would give Sterling important ... (full story)