Pound Under Pressure as U.K. Services Suffer Worst Month Ever

By Yasin Ebrahim

Investing.com – The pound continued its selloff against the dollar on Friday, as the U.K. services sector suffered its worst month on record, exacerbating fears about the strength of the economy at a time when business activity has ground to a halt following a nationwide lockdown last week.

GBP/USD fell 1.15% to $1.2249 after hitting a high of $1.2411 on the day.

IHS’s Markit’s services purchasing managers’ index, which measures the change in monthly sector activity, fell to reading of 34.5, the worst ever recorded.

With restaurants, pubs and other businesses set to remain in lockdown in the coming weeks, many fear the worst is yet to come, particularly as the Covid-19 pandemic in the U.K. shows little sign of slowing.

Offering a sliver of optimism, Health Secretary Matt Hancock tentatively suggested infections in Britain could peak on April 12, Sky reported.

"I defer to the scientists on the exact predictions, I'm not going to steer you away from that. That is one perfectly possible outcome," Hancock reportedly said, when asked about reports that the death rate could peak on April 12.

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