The Pound Sterling Exchange Rate was in the region of 1.1663 against the Euro as of 10:00 am
This morning Sterling was able to advance slightly on the Euro as political uncertainty in the Eurozone weighed on the latter currency, but fell against the US Dollar as investors braced themselves for a disappointing UK services PMI report.
However, although economists expected services PMI to come in at 49.5, marking a second month of contraction, the actual result was 51.5 – a return to growth and the strongest level achieved since September last year.
As the service sector is responsible for over three-quarters of the UK’s GDP this data – when viewed in conjunction with the modest improvement in manufacturing – serves to significantly brighten the UK’s economic outlook.
As Chris Williamson, an economist with Markit, asserted: ‘A return to growth of the service sector in January greatly reduces the likelihood of the UK falling back into a triple-dip recession’. Williamson went on to add that: ‘Stronger growth would inevitably have been recorded had the country not suffered the heavy snowfall, suggesting the underlying trend is even stronger than these numbers indicate.’
In spite of concerns regarding the intensity of governmental spending cuts an index recording business expectations also rose, hitting the highest level seen for 8 months.
It wasn’t all positive news though as inflation continued to be an issue. Although prices charged rose more slowly than the swell in costs for service providers, they still increased at the most rapid rate seen since June 2011.
However, although the National Institute of Economic and Social Research has released a report which states that Britain’s economy will grow more slowly than forecast this year, this services result allowed the Pound gain on its American rival. The British currency could enjoy further advances in the hours ahead, despite the Euro strengthening as a result of positive Services PMI for the currency bloc.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1663
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5776
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5157
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8675
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5752
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7872
The Pound Sterling to Swiss Franc is currently trading at 1.4336
The Pound Sterling to Japanese Yen exchange rate is currently trading at 146.3700
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