Pound Rises As U.K. PMI Hits 7-month High
March 02 2015 - 5:19AM
RTTF2
The British pound strengthened against most major currencies in
the early European session on Monday, after data showed that the
British manufacturing activity was the strongest in seven months
during February.
Data from Markit economics showed that the seasonally adjusted
Markit/CIPS Purchasing Manager's Index for the manufacturing sector
climbed to 54.1 in February. Economists had forecast a score of
53.3. January's reading was revised up to 53.1 from 53.
In other economic news, data from the Bank of England showed
that U.K. mortgage approvals increased to a 4-month high in
January. The number of approved housing loans increased to 60,786
in January from 60,349 in the prior month. This was the highest
since September but below the expected level of 61,000.
Consumer credit increased by GBP 0.8 billion from December,
faster than a GBP 0.5 billion rise seen a month ago. It was
forecast to grow by GBP 1 billion. The annual growth in secured
lending remained unchanged at 1.8 percent and consumer credit
growth improved marginally to 6.7 percent from 6.6 percent.
Meanwhile, M4 money supply declined 0.8 percent month-on-month
in January, reversing a 0.1 percent rise in December. This was the
first fall in three months. On a yearly basis, M4 declined at
faster pace of 2.2 percent after decreasing 1.1 percent in the
prior month.
In the Asian trading, the pound held steady against other major
currencies.
In the European trading today, the pound rose to a 4-day high of
1.4753 against the Swiss franc, from an early low of 1.4680. The
pound may test resistance near the 1.56 region.
Against the U.S. dollar and the yen, the pound edged up to
1.5428 and 184.90 from early lows of 1.5384 and 184.36,
respectively. If the pound extends its uptrend, it is likely to
find resistance around 1.58 against the U.S. dollar and 188.06
against the yen.
Looking ahead, U.S. personal income and spending data for
January and Canada current account for fourth-quarter are set to be
published in the New York session.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Apr 2023 to Apr 2024