EUR/GBP rises after UK flash Services PMI falls into contraction

The noted UK flash PMI data has just now hit the screens and in terms of the service sector reading it was not good. The flash reading fell below 50, where it was expected to drop back to around 51.5. The actual reading stood at 48.9 and that means it has fallen into contraction for the first time in many months. The detail accompanying this data is not good either and seems to come from the government increases in wages and National insurance costs. The Pound has understandably fallen in this news, but in real terms not actually by that much. Perhaps the markets are not that surprised by the data? Well, in any event it was not good and it has also pushed the EUR/GBP immediately higher and that might be the pair that is best avenue to trade this news right now under the current circumstances? We shall see. The GBP/USD is currently at 1.33 but the EUR/GBP is edging above 0.8570