The Pound climbed to its best level in a week against the Euro on Wednesday after an economic report showed that the UK’s services sector output expanded more than forecast in February.
The Markit/CIPS purchasing manager’s index came in at 58.2 for last month, slightly down on the previous figure of 58.3. The index wasn’t seen as negative however as it showed that new orders increased more than expected and optimism about the coming year climbed to its highest-level in more than four years. A reading above 50 indicates growth, whilst one below indicates contraction.
“There’s no end in sight to the good news. With business confidence in the services economy rising, growth should pick up again in March, adding conviction to the growing consensus that the economy is set for its best year of growth since 2007, with the rate easily surpassing the 1.8% expansion seen last year,” said Markit’s chief economist Chris Williamson.
Sterling looks set to continue to remain supported for the rest of the week and tomorrows house price data due to be released by Halifax looks likely to show a further rise in property prices.
The Bank of England is holding its two day long policy meeting today and is expected to maintain interest rates at the record low level of 0.5%. The Bank is also likely to give its take on how the Uk economy is performing.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6673 ,
Pound Sterling,,Euro,1.2136 ,
Pound Steling,,Australian Dollar,1.8603 ,
Pound Sterling,,Canadian Dollar,1.8477 ,
[/table]
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