Pound Higher after PMI Release

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Por: DailyForex

The Pound Sterling inched higher after the Markit release for PMI Services was released earlier today; the survey for December showed sectoral growth with a reading of 54.2, above the unchanged 53.8 reading from November. The Bank of England also reported that consumer credit fell unexpectedly in November, falling short of expectations while October’s figure was revised down. On a brighter note, the UK central bank reported that mortgage approvals was higher than forecast, while October’s figures were upwardly adjusted.

As reported at 11:02 am (GMT) in London, the GBP/USD was trading at $1.3546, a gain of 0.25%; the pair earlier hit a peak of $1.3556 while the session low is at $1.3503. The EUR/GBP is trading at 0.88960 Pence, a gain of 0.03%; the pair has ranged from a session low of 0.88790 Pence while the peak is at 0.8900 Pence. The GBP/JPY is at 152.51643 Yen, up 0.299%; the pair earlier hit a peak of 152.581 Yen.

Pound Sentiment Improves

Analysts say that while sentiment for the Pound is largely based on the government’s ability to push through a favorable trade package with the European Union, the Pound is also benefitting from a broadly weaker greenback. Some recovery in risk sentiment is also helping to provide the Pound with a boost; analysts say, however, that investors do remain wary of the UK’s current account deficit which has continued to widen.

 

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.