When is the UK Services PMI and how could it affect GBP/USD?

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.