Last week both UK construction and manufacturing PMI for July came in above estimate, and now positive services PMI is contributing to the brightening picture of the third quarter.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1559 as of 10:40 GMT
1 Euro is currently worth 0.8654 pence
Sterling was boosted against the Euro and US Dollar last week as UK manufacturing PMI came in at 54.6 and construction PMI came in 57.0 – beating respective estimates of 52.8 and 51.5 – and the British currency remained supported as the European session began today.
Economists expected UK services PMI to climb from 56.9 in June to 57.4 in July.
However, the gauge actually surged to 60.2 last month.
In a statement issued with the report a representative from the Chartered Institute of Purchasing and Supply asserted: ‘The services sector stormed to a six year high in July, registering levels of performance not seen since before the financial crisis. Combined with the manufacturing and construction figures, this is the clearest sign yet that the UK economy is experiencing a broad based economic recovery and has the momentum to deliver continued growth. The seventh month of sustained, accelerated growth in services was underpinned by improved market conditions both domestically and abroad. Business confidence for UK services is now the highest it has been for 15 months, allowing businesses to expand, develop new products and increase their fees.’
The GBP/EUR exchange rate hit a high of 1.1587
While the Pound was able to extend its advance against the US Dollar after the data was published, gains against the Euro were limited as the common currency was supported by its own positive domestic news.
Although German services PMI unexpectedly declined, a Sentix index of investor confidence in the 17-nation currency bloc rose from -12.6 to -4.9 and Eurozone retail sales fell by less than forecast.
Economists had predicted that retail sales in the currency bloc would dip by 0.7 per cent month-on-month and be down by 1.3 per cent on the year, they actually declined by 0.5 per cent MoM and 0.9 per cent year-on-year.
Additional GBP/USD fluctuations could result from today’s US ISM non-manufacturing composite index.
Other UK news to focus on this week is tomorrow’s NIESR GDP estimate and the publication of the Bank of England’s inflation report on Wednesday.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5356 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1559 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7228 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9719 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6514 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8654 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5804 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5226 <
(As of 10:40 GMT)
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