The UK services PMI overview
The United Kingdom (UK) docket has the preliminary Purchasing Managers’ Index (PMI) data for January to be released by the S&P Global on Friday, later this session at 09:30 GMT.
S&P Global Services PMI is expected to come in at 51.7, slightly up from 51.4 recorded in the previous month.
How could it affect GBP/USD?
S&P Global Services PMI may fail to impact the Pound Sterling (GBP against the US Dollar (USD) as traders widely expect the Bank of England (BoE) to stay put on a gradual easing path, even as price pressures accelerated in December. Manufacturing and Composite PMI will also be eyed.
As expected, the upbeat UK Retail Sales report fails to boost the GBP/USD pair. UK Retail Sales rose 0.4% month-over-month (MoM) in December, against an expected decrease of 0.1%. The core Retail Sales, stripping the auto motor fuel sales, increased 0.3% MoM in December, compared with the previous decline of 0.4% (revised from 0.2% decline). Meanwhile, the annual Retail Sales climbed 2.5%, while the annual core Retail Sales jumped 3.1%.
The GBP/USD pair may regain its ground as the US Dollar (USD) could weaken amid risk aversion driven by geopolitical tensions. US President Donald Trump initially threatened tariffs over his Greenland plan, but later reversed course after reaching a NATO framework agreement for a potential deal.
Technically, the GBP/USD pair inches lower after gaining more than 0.5% in the previous session, trading around 1.3490 at the time of writing. The pair may target the three-month high of 1.3562 as the next barrier. The immediate support lies at the nine-day Exponential Moving Average (EMA) of 1.3450, followed by the 50-day EMA at 1.3397.
Economic Indicator
S&P Global Services PMI
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:
Fri Jan 23, 2026 09:30 (Prel)
Frequency:
Monthly
Consensus:
51.7
Previous:
51.4
Source:
S&P Global
Source: https://www.fxstreet.com/news/when-is-the-uk-services-pmi-and-how-could-it-affect-gbp-usd-202601230727
