The
British pound witnessed fluctuation versus the U.S. dollar during Friday’s
trading, but it is on its way to record a rise at the weekly basis, following the
release of the services sector data in Britain.

The
pound sterling traded at 1.2453 against the dollar, as of 11:40 GMT, after
opening trading today at 1.2460, while it recorded the highest level at 1.2485
and the lowest level at 1.2436.

The
historical recession suffered by British companies during the recent period
witnessed stability during the month of June, with a gradual reopening of the
British economy after the government eased measures to curb the spread of the
Corona virus.

The
PMI for the services sector rose during the month of June to 47.1, a little
higher than the previous reading and expectations of 47.0, but the sector
remained in the contraction zone since the reading was below the 50-level separating
growth from contraction.

More
than 25% of service providers in Britain reported an expansion in new business
during the past month due to the return of demand and the gradual restart of
the British economy.

In
spite of this, the closing procedures continued to impede travel, entertainment
and tourism operations, where the survey showed that 33% of the services
companies that represent the largest part of the British economy recorded a
decrease in activity, down from 54% during the month of May.

The
Composite PMI, which groups the services and manufacturing sectors, rose to
47.7 in June, up from 30.0 in May and again slightly higher than the initial
reading of 47.6.

In June, the Bank of England
stated that the British economy was on its way to shrinking by about 20% in the
first six months of 2020, a smaller decrease than initially feared, but it is still
one of the largest annual declines in 300 years.

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