Sterling heads south as British PMIs add to post-Brexit fears

Sterling heads south as British PMIs add to post-Brexit fears

On Friday, the British pound edged lower, after the release of gloomy economic posts from Great Britain contributed to worries over the outlook for the UK’s growth following the country’s intention to break up with the European Union.   

The currency pair GBP/USD achieved 1.3173 during European morning trade, the session minimum and the pair managed to consolidate at 1.3175, losing 0.42%.

Cable was about to gain support at 1.3061, which is the minimum of July 20 as well as resistance at 1.3313, the peak of July 18.

Research group Markit informed in July its flash British manufacturing purchasing managers’ index edged down to 49.1 from June’s outcome of 52.1. Financial experts had expected the index to sink to 47.8 this month.

At the same time, in July the British services PMI sagged to 47.4 from June’s result of 52.3, compared to expectations for a 48.9 drop.

The data contributed to fears over a slowdown in Great Britain’s growth as traders keep assessing the economic effects of the Brexit vote.

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