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Next up comes UK PMI data- EUR/GBP ready and waiting

Very shortly, at 8.30am GMT the UK will also release their April flash PMI readings on Manufacturing and Services. We have also ready seen a rebound in the services sector readings from France, Germany and the Eurozone this morning and that has buoyed the Euro. The GBP/USD has managed to cling to the coattails of that rebound, but this UK data could derail that. It is also important to note that the Services sector is even more important for the UK economy than it is for the likes of France and Germany. So, the markets are not expecting an improvement this morning, with a forecast of 53 from 53.1 forecast.  Anything significantly below 53 and the FTSE 100 will probably latch onto that with more upside, but the Pound will not appreciate such a reading. In that respect the focus here is on the EUR/GBP. The Pound is already under pressure versus the Euro and is not far below 0.8650 this morning. So, given the rebound in the EUR/USD this morning, the EUR/GBP is very much on the radar shortly. Naturally, so is the GBP/USD and it needs something better than 53 to help the pound rebound. The immediate risk of lower reading is live though and one where the Pound will likely not react well, if seen. The EUR/GBP is currently trading at 0.8637
 

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