XE Market Analysis: North America – Sep 03, 2015

The dollar continued to trade firmly, especially against sterling after an unexpected drop in UK service PMI data. Cable clocked a fresh three-month low at 1.5237 on news that the PMI dove to a 27-month low of 55.6 in the August survey from Markit, down from July’s 57.4. The data point to a slowing in growth momentum in the UK economy, adding impetus to the recent tapering in BoE tightening expectations. Elsewhere, USD-JPY nudged out a two-day high at 120.70 during the Tokyo session, subsequently drifting back under 120.50 during the European AM session.