The Pound Sterling edged higher against both the US Dollar and the Euro on Thursday after the latest PMI Manufacturing reading was released. According to Markit, the UK’s Manufacturing PMI for August came in at 53.3, significantly higher than the 48.0 predicted in the latest poll of economists. July’s PMI reading was also notched higher to 48.3 from the original 48.2. That data is likely to help take the edge off investors’ worries of an economic decline since late June when the UK held a referendum on the withdrawal from the European Union.
As reported at 10:46 am (BST) in London, the GBP/USD was trading at $1.3241, up 0.76%; the pair had hit a session high of $1.3265 just after the news while the session low was established at $1.3124. The EUR/GBP was trading at 0.8416 Pence, down 0.9041% for the Euro, and not far from the session low of 0.8401 Pence.
Upbeat News from China Helps Antipodean Currencies
PMI data also helped to lift the Australian Dollar after the China Federation of Logistics and Purchasing reported that China’s Manufacturing PMI ticked up to 50.4 from a consensus estimate of 49.9; any reading over 50.0 signifies expansion of the sector. The AUD/USD was trading higher at $0.7533, up 0.21%; the pair hit a session high of $0.7547 and a low of $0.7510. The NZD/USD was also higher at $0.7264, up 0.22%. Because China is a major trading partner with Australia and New Zealand, both the Aussie and Kiwi Dollars are generally supported by upbeat economic news from China.