U.K. rate hike nearer after strong PMI?

|By:, SA News Editor

"Record-low interest rates are no longer necessary," says Berenberg senior economist Christian Schulz, following a better-than-expected read from the U.K. services PMI, which fell to 58.6 in May from 58.7 in April, but beat expectations of 58.2. “The latest data support our call that the first hike will come in November 2014.”

Sterling (FXB) cuts its losses following the strong print, now down 0.1% and buying $1.6732. The FTSE, however, isn't as big of a fan of the economic news, quickly shedding 0.3% after the report.

ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK