UK CIPS/Markit March PMI services has come in better than expected, at 45.5 up from 43.2 in February and better than the median forecast of 43.5. The 45.5 read is the highest since September 2008.
Cable has extended its rally on the news, presently at 1.4785 having earlier hit a 1.4793 high. The 1.4775 resistance having been seen important on the way up will now provide initial support. Further gains look likely.
Another big plus for cable is the negative technical backdrop for the EUR/GBP cross. It’s presently down at 0.9090 and there seems to be a lot of talk of a move to at least 88/89 area.
