The pound is tanking

British pound is tanking after some ugly data.

The currency is down by 1.1% at 1.3090 against the dollar as of 7:27 a.m. ET.

The composite reading for Markit flash PMI fell to 47.4 in June, its lowest reading since March 2009. Additionally, manufacturing PMI sank to a 44-month low of 49.1 and services PMI tumbled to an 87-month low of 47.4.

All three readings were below the 50.0 level, which theoretically indicates a contraction.

“The downturn, whether manifesting itself in order book cancellations, a lack of new orders, or the postponement or halting of projects, was most commonly attributed in one way or another to ‘Brexit,'” Markit’s chief economist, Chris Williamson, said in the report.

“The news was not pleasant. The results were below the pessimistic market expectations,” observed Marc Chandler, the global head of currency strategy at Brown Brothers Harriman. “While the PMI is survey data, the magnitude of the decline may underpin expectations of BOE action in a couple of weeks.”

As for the rest of the world, here’s the scoreboard:

  • The euro is little changed at 1.1016 against the dollar as the eurozone economy showed “surprising resilience” after the Brexit vote. The Markit PMI composite reading came in at 52.9 for June, down slightly from May’s reading of 53.1 but ahead of the 52.5 that economists were forecasting. Germany’s services sector impressed with a print of 54.6, while its manufacturing sector disappointed with a reading of 53.7. Readings in France impressed across the board, but the manufacturing sector remained in contraction at 48.6, a four-month high.
  • The US dollar index is up by 0.2% at 97.15. Markit US Manufacturing PMI will be released at 9:45 a.m. ET, and the Baker Hughes rig count is due out at 1 p.m. ET.
  • As for the Nigerian naira, some analysts and economists have noted recently that the currency is looking a lot less “free” than was promised last month when the central bank finally de-pegged it from the dollar.
  • The Japanese yen is down by 0.2% per dollar.

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