UK November services PMI 50.4 vs 52.5 expected

Latest data released by Markit/CIPS - 5 December 2018

• Prior 52.2
• Composite PMI 50.7 vs 52.1 expected
• Prior 52.1

Those are some awful misses there. Markit says that this puts the UK Q4 GDP on track for a +0.1% q/q reading, ouch. The pound is weighed lower a little on the release here. The initial reaction sees cable fall from 1.2730 levels to 1.2715 before moving back to 1.2730 now.

Looking at the details, the headline print for services is the weakest since July 2016 as business expectations fall to 60.6 from 63.1 in October. That's the second-weakest reading since the financial crisis. Meanwhile, the composite reading also dips to 50.7, which also represents the weakest print since July 2016.

I would expect the weak prints here to weigh on the pound a bit more on the day but then again, it's all about Brexit sentiment right now for the quid. However, given that hopes of May winning the meaningful vote next week remains in much doubt, the release here will only serve to aid rally sellers to drive down the pound if need be later in the session.