Latest data released by Markit/CIPS - 3 October 2018
- Prior 54.3
- Composite PMI 54.1 vs 53.9 expected
- Prior 54.2
I would say very much in-line with expectations here for both readings. According to Markit, this puts Q3 GDP growth on track for just under 0.4%. Almost a nil reaction in the pound as a result of the data coming in very close to expected estimates. Cable now sits at 1.3000 from 1.2998 before the release here.
Although both the services and composite readings are weaker in September relative to August, it's not a sign that there is an imminent derailing of UK economic growth momentum altogether. As Markit suggests, +0.4% q/q growth is decent but not spectacular - much like the data release here.
In short, this doesn't change much of the current picture in the pound. The respective technical levels still hold for cable as we're back now to trading Brexit headlines again.
