GBP surges on strong UK Services PMI data -...>

FOREX: GBP surges on strong UK Services PMI data

- A largely uneventful morning sparked into life following the release of strong

UK Services PMI. GBPUSD was initially pressured in early Europe by the

broader-based firmer dollar, before support ahead of $1.3300 cushioned falls.

Rate held firm ahead of the UK data and surged on a stronger-than-expected

release of 54.0 to $1.3381. This was the highest reading since Feb, Markit also

noted UK GDP is now estimated to grow at a quarterly rate of 0.3% to 0.4% in Q2.

- USDJPY briefly touched Y110.00, but as the USD unwound drifted to Y109.75/80.

The 200-dma at Y110.21 seen as key tech resistance.

- EURUSD comfortably holds above $1.1700, just off its best levels of the

session ($1.1717).

- The RBA left rates on hold as expected with the statement offering few

surprises. It introduced risk factors on Italy and some EM countries and removed

reference to the reduction of spare capacity. AUDUSD witnessed limit react to

hold a narrow 30 pip range.

- NZD showed modest gains to $0.7045 ahead of today's dairy auction.