Pound Sterling Supported by UK Growth but Rate Hike Chances Diminish

The British Pound remains supported by firmer UK growth, although economists note easing price pressures are making further Bank of England rate hikes less likely.

Britain's dominant services sector returned to growth in July, with the final S&P Global/CIPS services PMI rising to 52.1 from 48.8 and beating the flash estimate of 51.8.

The composite PMI climbed from 49.3 to 52.2, its first expansionary reading since April, as new orders improved and business optimism reached its strongest level since before the Iran conflict began.

UK economists at Pantheon Macroeconomics described the overall signal as 'remarkably healthy', particularly as the survey covered a period when the price of oil traded above $85.