• UK Manufacturing PMI contracts further to 46.9 in May, a downside surprise.
• Services PMI in the UK comes in at 55.1 in May, misses expectations.
• GBP/USD challenges monthly lows near 1.2385 on disappointing UK business PMIs.

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 46.9 in May versus 48.0 expected and, 47.8 -  April’s final readout.

Meanwhile, the Preliminary UK Services Business Activity Index for May slipped to 55.1, compared with a 55.9 final print for April and 55.5 expected.

FX implications

GBP/USD is testing monthly lows near 1.2385 on the downbeat UK Manufacturing and Services PMI data. The currency pair is losing 0.38% on the day to trade at 1.2389, at the press time.