UK January service sector PMI revised lower- GBP/USD yet to react much to the data

The UK January service and composite sector PMI revisions have just been released. The markets were not expecting any change in the January service sector reading of 51.2. Well, it has just been revised lower, to 50.8. The GBP/USD had lifted to a new high on the week, leading into this data, reaching 1.2529. The reaction to the numbers has sent back a little, but so far not by very much. That said, the report was not very encouraging and S+P Global, who collate the data have painted a rather stark outlook for the UK economy. They refer to the prospect of stagflation a number of times in their accompanying commentary. So, it remains to be seen, if the Pound can weather all that. Meantime, a leading market player has advocated selling the GBP/JPY for a target of 180. The USD/JPY is certainly helping that cause right now, but more on that in the next update. The GBP/USD is currently trading at 1.2515