Pound fell dramatically when the preliminary UK S&P Global PMI came in weaker than predicted.

Pound Sterling (GBP) fell substantially on Monday, owing to weaker-than-expected preliminary UK S&P Global Purchasing Managers’ Index (PMI) data for September and negative market sentiment. The British pound underperforms its major rivals, with the exception of the Euro (EUR). Which pulled down by the Eurozone PMI’s unexpected slide into contraction territory.

The UK Composite PMI fell to 52.9 from 53.8 in August, indicating that economic activity in the UK It expanded at a slower rate. The manufacturing and service sector indexes fell more than predicted.

Still, the impact of the slower growth projected by the PMI data expected to limited, given remarks from Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. Who sounds optimistic about the overall economic picture.

“A slight cooling of output growth across manufacturing and services in September should not seen. As too concerning, as the survey data still consistent with the economy growing at a rate approaching 0.3% in the third quarter. Which is in line with the Bank of England’s forecast,” Mr. Williamson said.

Traders expect the BoE to decrease interest rates once more this year.

Going forward, the Pound Sterling valuation driven by market expectations regarding the Bank of England The interest rate outlook from the Bank of England (BoE). Traders expect the BoE to drop rates only once in the next two monetary policy sessions this year. The BoE maintained its key borrowing rates at 5% on Thursday, with an 8-1 majority, after reducing them by 25 basis points (bps) in August.

Daily digest market movers: Pound Sterling loses vs the US dollar.

In Monday’s London session, the pound sterling fell to around 1.3250 against the US dollar (USD) following the release of a weaker-than-expected PMI. Meanwhile, the US Dollar Index (DXY), which measures the value of the US dollar relative to its major counterparts, rises to around 101.20.

Market forecasts for the Federal Reserve (Fed) to opt for a 50-bps interest rate cut for the second consecutive time increase as officials continue to be concerned. Regarding the labor market prospects. According to the CME FedWatch tool, the Fed’s chance of lowering interest rates by 50 basis points to 4.25%-4.50% in November is approaching 50%.

Fed Governor Christopher Waller said on Friday that if labor market conditions worsen, more rate reduction will be implemented.

Investors looking for preliminary S&P Global Purchasing Managers’ Index (PMI) data for September from the United States.

Investors looking for preliminary S&P Global Purchasing Managers’ Index (PMI) data for September from the United States (US), which will be release at 13:45 GMT. Economists expect the Manufacturing PMI to rise to 48.5 from 47.9 in August. However, a value less than 50.0 considered a contraction. The Services PMI estimated to have decreased to 55.2 from 55.7, indicating a small growth slowdown.