The Pound Sterling edged higher versus the US Dollar, recovering after a touching a 2-month trough on the first trading day in London after it was learned that the UK’s ambassador to the EU would be announcing his resignation. Economic data continues to provide a boost with the latest construction PMI showing December growth at a 2½ month peak with a reading at 54.2 against analysts’ expectations of a reading of 52.8. Yesterday, the PMI Manufacturing survey was also unexpectedly upbeat for the December reading. The UK’s consumer credit and mortgage approvals were also better than expected, adding to the improved sentiment for the Pound.
As reported at 10:42 am (GMT) in London, the GBP/USD was trading at $1.2268, a gain of 0.22%, the daily low was set earlier at $1.2217 while the peak was at $1.2287. The EUR/GBP was up at 0.8505 Pence, a gain of 0.04%; the pair’s range was from a low of 0.8478 to a peak of 0.8515 Pence.
EU PMIs Gives Boost to Euro
Upbeat PMI reports from the EU, both individually and as a whole, have helped to lift the Euro higher. Markit reports shows that both Germany and France, the economic powerhouses of the European Union, showed improved figures in December with PMI Services with readings of 54.3 and 52.9, respectively, and PMI Composites with readings of 55.2 and 53.4, respectively. As a whole, the EU’s PMI Composite was at 55.4 against expectations of a flat reading. The EUR/USD was trading at $1.0435, a gain of 0.27%.