Date: Tuesday 06 Jul 2010
Profit taking hit the pound Monday after a weaker than expected report on Britain’s services sector raised concerns about the strength of economic recovery.The Markit/Chartered Institute of Purchasing and Supply (CIPS) services purchasing managers index fell in June for the third time in four months, down to 54.4 from 55.4 in May. Economists were looking for 55.2.
Sterling had rallied to a two-month high Friday up above $1.52, but dropped by over a cent at the start of the new week to $1.51. Trade was thin during the US Independence Day holiday.
Meanwhile, Martin Weale, a leading academic and director of the National Institute of Economic and Social Research (NIESR) think tank, has been appointed to the Bank of England’s Monetary Policy Committee.
Chancellor George Osborne’s choice to replace Kate Barker, who left the rate-setting team in May, will make his first input at August’s meeting and the forecast round leading up to it.
Weale is regarded as on the ‘dovish’ side given cautious economic forecasts made by NIESR recently.The dollar did better against the euro having taken a battering last week as a string of economic data painted a less than impressive picture of the American economy.
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