The Pound strengthened to a two-month high on Monday following the release of data that continued to support the UK’s economic recovery. Against the US Dollar, Sterling rose for the first time in five days against the Dollar after British manufacturing accelerated in August with output increasing at its fastest pace in nearly 20 years.
According to the Markit/CIPS Manufacturing Purchasing Managers Index, output jumped to 57.2 in August , beating the 54.8 recorded in July and marks a fifth consecutive month of expansion. Any figure over 50 indicates growth. The reading is the strongest recorded since February 2011 and smashed economist forecasts.
“The UK’s factories are booming again. Manufacturing is clearly making a strong positive contribution to the economy, providing welcome evidence that the long-awaited rebalancing of the economy towards manufacturing and exports is at last starting to take place now that our export markets are recovering” said Rob Dobson, senior economist at Markit.
Exports to the USA, China, mainland Europe, India, Brazil, Ireland and Scandinavia saw the biggest improvement as the global economy continues to make a recovery. Exports look set to continue to improve as the Eurozone continues to post positive data and finally seems to be on the verge of making a recovery.
House prices also continue to rise with the average value of property in England and Wales rising by 0.4% in August, beating July’s figure of 0.3%. Prices increased by 1.8% from the previous year and were the highest increase since July 2010.
On Thursday, the Bank of England is set to announce its latest interest rate decision, economists are expecting the rate to be maintained at 0.5%, and any other movement is likely to create volatility for the currency.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5575 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1785 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7322 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9930 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6429 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8496
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5021 >
(As of 10:10 am GMT)
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