The UK will publish its September Services Purchasing Managers’ Index (PMI) later in the European session at 08:30 GMT. Markets expect the headline figure to ease to 53.5 from 54.2 in August, signaling a slight slowdown in activity within the country’s dominant services sector.
Impact on GBP/USD
Ahead of the release, GBP/USD is holding above the 1.3500 psychological level but lacks strong bullish momentum after Monday’s rebound from the mid-1.3400s, a two-week low. A stronger-than-expected services PMI could offer modest support for the pound, although any upside reaction may be capped by ongoing demand for the US dollar amid dip-buying interest.
Conversely, a weaker print would likely revive selling pressure on GBP/USD, particularly given the Bank of England’s dovish policy outlook. In such a scenario, attempts at recovery may be viewed as opportunities to sell into strength, keeping the near-term bias tilted to the downside.
