The Pound Sterling Exchange Rate was 1.1577 against the Euro as of 10:28 am
After slumping to a 15-month low against the Euro on Friday the Pound strengthened briefly this morning, responding to economist’s expectations for the latest data to show an improvement in UK manufacturing data.
Economists predicted that the index of construction activity compiled by Markit Economics and the Chartered Institute of Purchasing and Supply would rise from December’s level of 48.7 to 49.2, just 0.8 below the 50 mark which separates growth from contraction.
As a result Sterling posted modest gains against all but one of its most traded counterparts, advancing 0.5 per cent against the Euro.
However, although UK business optimism increased and new orders stopped declining so rapidly the Markit/CIPS index of construction activity actually held at 48.7, the lowest level seen since June 2012.
Despite this disappointing result the Pound continued to trade higher, benefiting from the Euro broadly softening is response to a fall in Spanish and Italian bonds.
Though the Pound held its level following this latest construction news the currency could drop off in the hours ahead as investors consider the ramifications for the UK economy.
Senior Markit economist Tim Moore asserted: ‘January’s survey results are yet another indicator of the severe underlying fragility across the UK construction sector. Unfavourable weather outside is clearly far down the long list of difficulties afflicting construction companies at present.’
Although construction output is responsible for less than 7 per cent of the UK’s GDP, weakness in this sector last year was largely to blame for the UK economy sliding back into recession.
And with a separate report, scheduled for release tomorrow, likely to show a contraction in the UK services sector the Pound could rapidly shed recent gains.
According to one FX-strategist: ‘We’ve had a big fall in Sterling, so you’d expect it to take a break and slow down a little bit. Most of the move has happened now but we still think it could go a bit lower because the UK numbers just cannot compete with the German numbers.’
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1577
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5738
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5096
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8610
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5668
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7792
The Pound Sterling to Swiss Franc is currently trading at 1.4329
The Pound Sterling to Japanese Yen exchange rate is currently trading at 146.4600
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