The Pound Sterling (currency:GBP) has rallied against 12 of its 16 major counterparts on Tuesday after UK services expanded much more than analysts anticipated for April. The Purchasers managers Index figure (PMI) beat expectations to post a figure of 58.7, which is the highest level since December 2013. A figure above 50.00 is considered to be positive reflecting expansion, where as a figure below 50 means the economy is contracting.
The main winners of the day were the Pound Euro exchange rate traded up +0.26% at 1.21891 GBP/EUR, the Pound Hong Kong Dollar exchange rate traded up +0.67% at 13.16469 GBP/HKD, the Pound Israeli Sheqel exchange rate traded up +0.44% at 5.85675 GBP/ILS, the Pound Mexican Peso exchange rate traded up +0.48% at 22.11180 GBP/MXN, the Pound Singapore Dollar exchange rate traded up +0.47% at 2.11785 GBP/SGD and the Pound Dollar exchange rate traded up +0.68% at 1.69825 GBP/USD. Currency exchange rates taken at 20:00 06/05/2014.
The is a clear indication the UK economy is recovering well and there is much more optimism towards the Pound Sterling and economy on a whole. The latest PMI reading only suggests the UK is showing no signs of running out of steam with growth accelerating further into the second quarter.
Following the release the Pound to Euro exchange rate rallied towards 1.2200 before rejecting the high after a number of STOP orders triggered. The Pound to US Dollar rate also touched a high of 1.6996 failing to push through the 1.70 psychological level. This is a big level and with the current momentum and liquidity building in favour of Sterling, it’s likely we will see a breakout through this key resistance level in the coming days. For Euro buyers, 1.2200 is also a strong level of resistance and we would need a hawkish tone from the Bank of England on Thursday so help support the next breakout from this range. The Euro to US Dollar, which is the most liquid pair in the market is also looking to test the next level at 1.40 in the coming weeks if European data continues to support strong movement.
Latest Pound Sterling, Euro, US Dollar Exchange Rates Today (Updated 20:00 07/05/2014)
The Pound Sterling to Euro exchange rate is trading up +0% at 1.21875 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.1% at 1.69583 GBP/USD.
The Euro to Pound Sterling exchange rate is trading down -0% at 0.82051 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.11% at 1.39145 EUR/USD.
The US Dollar to Euro exchange rate is trading up +0.1% at 0.71867 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.1% at 0.58968 USD/GBP.