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Sterling inches up after UK services PMI beats expectations

Reuters - UK Focus

LONDON, July 3 (Reuters) - Sterling inched higher against the dollar on Friday, hitting an intraday high, after data showed Britain's dominant services sector grew more than expected last month, suggesting the economy was picking up.

A purchasing managers' index (PMI) of private-sector services rose by 2 points in June to 58.5, topping all forecasts in a Reuters poll and staying comfortably above the 50 mark that divides growth and contraction.

Sterling rose to $1.5649 after the data, from $1.5618 before its release, before easing to $1.5625, up 0.1 percent on the day. Against the euro, it was 0.1 percent weaker at 71.095 pence.

Gilts and stocks were little changed by the data. (Reporting by Jemima Kelly, Atul Prakash and Andy Bruce; Editing by Patrick Graham)