FXStreet (Bali) - Despite the upbeat UK services PMI on Tuesday, RBS Economists believe that longer term, the economic 'moderation' theme remains intact.



Key Quotes



"The upside surprise in the UK services PMI temporarily calmed those worried about a slowdown in economic momentum. Industrial production for June may reverse after an unusually steep 0.7% m/m decline in May (RBSe 0.6%, market 0.6%)."



"Longer term, our economists feel the 'moderation' theme remains intact as the headwinds of interest rate rises, an appreciating currency and (from 2015) a significant and sustained fiscal tightening are expected to outweigh any favourable developments vis-à-vis stronger capex and net exports."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD falls to fresh lows sub-1.5600

  2. Forex News

    Dollar Forecast Improves, Indicator Shows it May Rally Across the Board

  3. Forex News

    British Pound Remains a Sell until we see this Change

  4. Forex News

    GBP/USD keeps range around 1.5630 after US data

  5. Forex News

    US Dollar Rally Stalls as Q2’15 US GDP Brings Mixed Bag

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!