UK PMI helps to reaffirm the market mood so far today

<p>The UK PMI data <a href="https://www.forexlive.com/news/uk-june-flash-services-pmi-537-vs-548-expected-20230623/" target="_blank" rel="follow">here</a> was weaker than estimated and that is reaffirming the sort of risk averse mood we're seeing so far on the session. Similar to the euro area readings earlier, this just prompts further questions about the resolve of the BOE and it comes just a day after they <a href="https://www.forexlive.com/centralbank/boe-surprises-with-50-bps-rate-hike-bringing-bank-rate-to-500-20230622/" target="_blank" rel="follow">raised the bank rate by 50 bps</a> in a surprise move.</p><p>Sterling traders were already fearing that the aggressive path could end up breaking something in the economy along the way and an already early stutter towards the end of Q2 is hardly reassuring. That will keep risk sentiment on edge as we look towards US trading later with bond yields continuing to hold lower for now.</p><p>10-year Treasury yields are down 7 bps to 3.728% while US futures are also continuing to posture more defensively. S&amp;P 500 futures are down 19 points, or 0.4%, at the moment. In Europe, major indices are at least recovering slightly from the early jitters with the Eurostoxx down 0.4%, DAX down 0.6%, CAC 40 down 0.3%, and UK FTSE down 0.2% (as compared to the 0.6% to 0.9% losses earlier).</p>

This article was written by Justin Low at www.forexlive.com.