This morning the Pound powered to a ten-week high against the Euro as yesterday’s better-than-anticipated manufacturing report, coupled with the expectation of a positive result for the construction sector, boosted the British currency against the majority of its peers.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1822 as of 10:15 GMT
1 Euro is currently worth 0.8548 pence
As the European session progresses Sterling’s bullish relationship with its rivals is likely to continue as a gauge of UK construction revealed that the sector expanded by significantly more than expected in August.
Economists had forecast that the reading for last month would come in at 56.9. Although this would have been down modestly from July’s 57, the index would still be notably above the 50 mark dividing growth from contraction.
However, the index actually soared to 59.1 – the sharpest pace of expansion for nearly six years.
The construction report stated that companies were reporting that the upturn in activity was being supported by increased client spending and improved confidence.
The GBP/EUR exchange rate hit a high of 1.1855
In a statement published with the report senior Markit economist Tim Moore commented: ‘The latest construction PMI figures are yet another indication that the UK economy has performed impressively over the summer months. A steep upturn in civil engineering activity suggested that public sector demand has rejoined residential building as a key driver of construction output growth during August.’
Moore continued: ‘With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to UK GDP in the third quarter of 2013.’
If tomorrow’s UK services PMI also surprises to the upside and beats the 59 level predicted, it will be another hat trick of positive results and a strong indicator that third quarter growth will exceed the 0.7 per cent expansion recorded in the second quarter.
After the data was published the Pound continued to advance on peers including the US Dollar and Euro.
Although tomorrow’s services report could help Sterling extend gains, investors will also be looking ahead to the Bank of England’s policy meeting. While the central bank is expected to maintain its current level of asset purchases and hold rates at record lows, the tone of the accompanying statement will be of interest.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5581 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1822 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7277 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9924 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6411 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8450 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5797 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5021 >
(As of 10:15 GMT)
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