gside global services PMIs coming weaker than expected, favored flows toward safe-haven assets. Hence, the GBP/USD is trading at 1.2567 down 0.42%, after hitting a daily high of 1.2631.During the European session, the UK S&P Global/CIPS Composite PMI slumped to 48.6 in August from 50.8 in July, its lowest reading since January, dragged downward by a falling Services PMI, which printed 49.5, below the 50 threshold that separates expansion/contraction territory.
In the meantime, data from China and theEven though the data suggests economic conditions would not warrant an additional rate hike by the, money market futures expect a 25-bps rate hike, as shown by interest rate probabilities. Chances lie at 87% the BoE would raise the Bank Rate for the fifteen times, since Andrew Bailey and Co began its tightening cycle in December 2021. As shown by the bottom picture, market participants estimate the BoE will hike again in early 2024.