SaxoTV

Beecroft: PMI slowdown and sterling to suffer as BoE meets

458 views
June 04, 2015 bank of england, business, cameron, equities, equity, equity strategy, foreign exchange, foreign exchange market, forex, forex 2014, forex 2014 outlook, forex buying, forex eurusd, forex exchange, forex idea, forex market, forex market overview, forex markets, forex saxo bank, forex strategy, forex trade idea, forex trade ideas, forex trading, forex trading 2014, forextrading, fx, fx crosses, fx forex, fx market, fx markets, fx options, fx strategy, fx trade, fx trade idea, fx trading, gb, gbg, gbgb, gbgbgb, gbp, gbp eur, gbp falling, gbp trading, gbp trading 2014, gbp trading 2015, gbp usd, gbp weakening, gbpchf, gbpchf november 2008, gbpeur, gbpeur 2014, gbpjpy, gbpusd, gbpusd 1.7, gbpusd 1.70, gbpusd 2008 october high, gbpusd 2014, gbpusd 2015, gbpusd five year high, gbpusd labour day, gbpusd oct 2008 high, gbpusd record high, gbpusd trade idea, pmi, pmi chicago, pmi data, pmi forecaststserling, pmi index, pmi manufacturas, pmi manufacturing, pmi markit, referendum, saxo bank, saxo tv, saxotv, ster, sterling, sterling appreciation, sterling dollar, sterling euro, sterling forex, sterling strength, sterling trading, stocks, trading, tradingfloor, tradingfloor.com, uk, uk banking industry, uk banking sector, uk banks, uk banksu, uk budget, uk data, uk economic data, uk economic outlook, uk economic recovery, uk economists, uk economy, uk election, uk elections, uk employment, uk gdp, uk growth, uk home, uk housing, uk inflation, uk interest rate, uk interest rates, uk jobs, uk jobs data, uk manufacturing, uk manufacturing', uk politics, uk pound, uk productivity, uk rates, uk recovery, uk retail industry, uk stocks, uk unemployment, uk wages, ukraine, ukraine commodities, ukraine crisis, ukraine gbpusd, ukraine oil supply, united kingdom
Chairman of Saxo Capital Markets Nick Beecroft analyses the latest PMI readings from the UK and assesses the likely thinking from the Bank of England's Monetary Policy Committee as it meets today.

The UK services sector PMI saw its sharpest slowdown in almost four years. The May reading was 56.5, down from 59.5 in April. Still a healthy number above the 50 mark but disappointing because the services sector accounts for around 65% of the UK economy.       

Sterling will suffer, according to Nick, who sees headwinds from Greece and China pushing against the UK economy. An extension of the austerity programme by a newly elected majority Conservative government is also likely to keep the Bank of England reluctant to raise rates in a hurry.