The Pound has made strong gains against the Euro after data released on Wednesday showed that service sector activity in the UK expanded at its fastest pace since March 2012 in May.
The strong reading has eased concerns over the UK’s economic outlook and has boosted confidence that the nations recovery is on track.
According to Markit the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 54.9 in May, up from April’s reading of 52.9. The data smashed economist expectations of a rise to 53.0. A figure above 50 indicates expansion in an industry, a figure below marks contraction.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said:“The data suggest that economic growth will have picked up in the second quarter compared to the 0.3% increase in GDP seen in the first quarter, shaping up to reach 0.5% if June sees sustained growth.”
He added, “The increasingly buoyant picture and improved outlook painted by the PMI’s effectively kills off any chance of the Bank of England’s Monetary Policy Committee voting for more stimulus such as asset purchases for the foreseeable future.”
Wednesday’s positive data adds to the sense of optimism that the UK economy is recovering and will be good news for the government which is under attack for its insistence on imposing austerity measures.
The Pound made gains against the US Dollar, Canadian Dollar and Euro
Following the data’s release the Pound made gains against the US Dollar, Canadian Dollar, Euro and made significant gains over the already weakened Australian Dollar.
Current Pound Sterling (GBP) Exchange Rates
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5354
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1757
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6032
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9189
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6509
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8510
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6234
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5208
(As of 10:15am GMT)
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