When will the UK Services PMI be released, and what impact might it have on the GBP/USD pair?

UK Services PMI Overview

The United Kingdom is set to release its preliminary February Purchasing Managers’ Index (PMI) figures, with the data scheduled to be published by S&P Global on Friday at 09:30 GMT.

The Services PMI is forecast at 53.6, slightly lower than January’s reading of 54.0, signaling a modest slowdown in services sector growth.

Potential Impact on GBP/USD

If the Services PMI prints in line with expectations, GBP/USD could face pressure, as a softer services reading may counterbalance the recent strength seen in UK Retail Sales.

UK Retail Sales rose 1.8% month-over-month in January, well above December’s 0.4% gain and surpassing the 0.2% market forecast. Core Retail Sales increased 2.0% over the same period, improving from a 0.3% rise previously and exceeding expectations for a 0.2% uptick.

However, the pair may remain under strain as the US Dollar stays firm following the release of the January meeting minutes from the Federal Open Market Committee. The minutes revived speculation that the Federal Reserve could consider further rate hikes if inflation proves persistent. Although most officials favored holding rates steady, only a minority supported a cut, and policymakers suggested easing could be appropriate if inflation slows as projected.

From a technical standpoint, GBP/USD has stabilized after rebounding from daily losses, hovering near 1.3460 at the time of writing. Daily chart analysis points to a developing bearish tone, with the pair trading below an ascending channel formation. Immediate support is located near the two-month high of 1.3344. On the upside, resistance is seen at the 50-day EMA around 1.3524, followed by the nine-day EMA near 1.3548.

Sources: Akhtar Faruqui