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The Markit/CIPS headline services PMI index eased to 54.3 in April from 57.1 in March, staying in positive territory for a fourth straight month, but undershooting the 55.7 forecast.
The euro rose around 30 pips to 90.41 pence after the data, its highest since late March 2010.
Sterling scraped a session low of $1.6446, compared with around $1.6495 before the data.