The Pound Sterling hit an 11-month peak versus the US Dollar after the latest economic data eased investors’ worries that the UK’s economic growth was slowing down. The latest PMI data released by Markit Surveys showed that the manufacturing sector reading edged up to 55.1 in July, moving above the forecasters’ consensus at 54.5; June’s PMI figure was revised downward to 54.2. Tomorrow, the PMI Construction survey for the UK will be released, with the consensus calling for a slight fall to 54.5 from 54.8 while the PMI Services survey will come out on Thursday with a reading of 53.5 expected. For reference, any number above the 50.0 threshold signals expansion in the sector.
As reported at 11:12 am (BST) in London, the GBP/USD was trading at $1.32, a gain of 0.13%; the pair has ranged from a low of $1.31902 to a peak of $1.32404 in today’s trading session. The EUR/GBP is down 0.32% to trade at 0.8933 Pence; the pair hit a session trough of 0.89220 Pence while the peak was at 0.89630 Pence.
BoE Outlook Hopeful
Positive news from the housing sector also helped to lift the Pound, with housing prices beating expectations at 2.9% in July (year-over-year), against expectations of a fall to 2.7%. Altogether, the numbers should bring welcome relief to the Bank of England’s policymakers who are on the verge of making a policy decision on Thursday. Analysts say that the recent improvement in the UK economy, especially after a lackluster first half, must be assuaging some concerns and helping to change the policy outlook.