Sterling Erases Losses on News of Steady UK Services Growth

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By Benjamin Spier, 7 June 2012 08: 56 GMT the takeaway: PMI shows Services steadily-> BoE should ensure that property purchase plan unchanged-> Sterling clears prior losses

Services United Kingdom output continues to grow at a steady rate, according to Index managers purchases by Markit Economics. Services PMI may was reported to 53.3, increases at the same rate that the previous month and beating the expectations of analysts for a fall to 52.4. A PMI of more than 50 indicates growth in the sector.

Constant growth is the result of gain in the new company, and UK PMI services survey reported growth during 17 months of straight lines. However, the business confidence is at its lowest point of the year according to the index, due to concerns about the crisis of the Euro.

Paul Smith of markit said in the report that although the British economy remains relatively weak, the GDP figures are "exaggerated the magnitude of the recession." Yesterday, a PMI UK survey reported that construction of exit growthslowed in May.

Later today, the Bank of England will announce June interest rates and make a decision on its programme of quantitative easing current (target of active purchase). Although most of the analysts surveyed by Bloomberg provides that the two measures will remain unchanged, there was that the Bank will increase its asset purchase program to try to combat the economic recession of the speculation.

GBPUSD erased the prior session losses on news of better than PMI for services. The pair rose yesterday as the appetite of the risk taken hold of the market following reports that the Germany is developing a plan in support of the Spanish banks.

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7 June 2012 08: 56 GMT

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