Created
: 2025.08.05
2025.08.05 17:16
The Euro trades lower for the second consecutive day on Tuesday, exploring levels sub-0.8700 as the Pound trims some losses, with investors shifting their gaze to the Bank of England's monetary policy decision, due next Thursday.
The weak UK employment and Gross Domestic Product figures seen in July have boosted market expectations that the Bank of England will cut rates by 25 basis points, leaving its benchmark rate at 4%, after Thursday's meeting.
Recent monetary policy meetings, however, have revealed a split committee, with the hawkish party showing its concern about the heating inflationary trends. The possibility of leaving rates unchanged seems remote but is not completely discarded. Such an outcome would send the Sterling rallying.
The Euro, on the other hand, remains moderately weak, weighed down by a lopsided trade deal with the US and signs of deterioration in the bloc's leading economies. The final Eurozone Services PMI has been revised lower to a 51.0 reading from the preliminary estimations of 51.2.
Later on the day, S&P Global will release the final reading of the UK Services PMI. Preliminary estimations pointed to a slowdown to 51.2 from the previous month's 52.8 reading.
The Services Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in the Eurozone services sector. As the services sector dominates a large part of the economy, the Services PMI is an important indicator gauging the state of overall economic conditions. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among services providers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Tue Aug 05, 2025 08:00
Frequency: Monthly
Actual: 51
Consensus: 51.2
Previous: 51.2
Source: S&P Global
The Services Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging business activity in the UK's services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for GBP.
Read more.Next release: Tue Aug 05, 2025 08:30
Frequency: Monthly
Consensus: 51.2
Previous: 51.2
Source: S&P Global
its
Created
: 2025.08.05
Last updated
: 2025.08.05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy