Forex Flash: BoE to stay on hold thanks to UK Services PMI – TD Securities

The January Construction PMI came in disappointing, at the same pace of December (at 48.7), instead of rising to 49.1 as expected. “The poor weather was cited as one factor, but in general demand remained weak even though expectations started to improve", wrote analyst Richard Kelly, expecting a higher Services figure. "The takeaway for the more crucial Services PMI on Tuesday is that we should still see an increase as the weather impact doesn’t seem that bad, but probably enough to keep it from rebounding above 50 as it could have without the freezing temps and snow", wrote analyst Richard Kelly, thus expecting the BoE to stay on hold.