Ella 
Sterling tested the previous week’s lows as the UK’s S&P Global Purchasing Managers Index remained subdued.
UK factory activity shrank for a 12th straight time as the Bank of England aggressively raised interest rates.
With the Bank of England set to raise interest rates further, the economic outlook is not optimistic.
Sterling (GBP) gave back all of Friday’s gains as the UK flash S&P global purchasing managers’ index (PMI) for July came in below expectations. The GBP/USD pair fell as shrinking factory activity and a slump in the services sector weighed on the pound. The UK’s economic outlook is under pressure from rising inflation and interest rate increases from the Bank of England (BOE).
UK businesses have postponed their current credit needs to avoid paying higher interest rates. The country’s economic outlook is grim as the Bank of England is expected to raise interest rates further in August. Looking ahead, employment conditions are expected to come under pressure from weakening economic activity.
