While the Pound extended declines against the US Dollar, taking it’s five-day drop to 1 per cent, the British asset rallied against the Euro for a third day after the release of UK manufacturing PMI.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.6004 as of 10:30 GMT.
Although the manufacturing purchasing manager’s index dipped slightly in October, the result was still significantly above the 50 mark separating growth from contraction and added to signs that the UK economic recovery continued in the fourth quarter.
Manufacturing PMI dipped from a negatively revised 56.3 in September to 56 last month. Economists expected the gauge to come in at 56.4
In the Markit statement accompanying the figures, economist Rob Dobson asserted; ‘The manufacturing PMI remains close to Augusts’ two-and-a-half year high, with growth of output and new orders both trending near to recent 19-year records. Despite only accounting for less than 11 per cent of the economy, the current strength of growth seen in manufacturing means the sector will still provide a major boost to the economy in October, boding well for the strong pace of economic growth we saw in the second and third quarter being sustained into the fourth quarter.’
This result follows yesterday’s strong UK house price data.
1 US Dollar is currently worth 1.6004 pence
Over the last week encouraging UK data and less-than-impressive news from the Eurozone has helped the Pound advance by 1.1 per cent against the Euro.
While Sterling was struggling early into the European session yesterday as UK consumer confidence declined, an unexpected slump in Eurozone inflation and a surprising drop in German retail sales ensured that the GBP/EUR pairing remained bullish.
With Greek manufacturing data disappointing expectations this morning the Euro remains under pressure, and the Pound is likely to hold on to gains against its European rival over the weekend.
As Frankfurt-based currency strategist Lutz Karpowitz noted; ‘There’s a very sharp decrease in the Euro-region inflation rate and the market is pricing in that the European Central Bank might take some more action [such as a further rate increase]. That’s reflected in a weaker Euro.’
Next week UK news to look out for includes construction/services PMI, industrial/manufacturing production figures, the NIESR GDP estimate for October and the Bank of England’s rate decision.
Current Pound Sterling (GBP) Exchange Rates:
< Down > Up
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6004 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1828 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6911 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9320 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6251 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8454 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5920 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5168 <
(As of 10:30 GMT)
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