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Services PMI worse than expected

UK DATA
  • Decent miss for the services and composite data - there's been a harder hit from the lockdown than consensus had expected.
  • However, on services, the press release notes: "Hopes of a rebound in the second half of 2021 were signalled by a further rise in the business expectations index during January. The degree of positive sentiment reached its highest since April 2014."
  • GBP offered on the back of weak PMI numbers - new lows in GBPUSD at 1.3654 to open the key near-term support at 1.3520.
  • Gilts also moved marginally higher but not reaching the days highs.

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