The pound advanced against its major counterparts in the European session on Monday, as British service sector activity expanded at the fastest pace in four months in February.

Survey data from IHS Markit showed that U.K. services PMI beat expectations in February, driven by the sharpest rise in new work since May 2017.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index, rose to 54.5 in February from 53.0 in January.

Any reading above 50 indicates expansion in the sector.

Rising European stocks also supported the currency.

Investors digested the results of Sunday's Italian elections and the Social Democratic party's vote for a coalition agreement with Angela Merkel in Germany.

The pound showed mixed performance against its major rivals in the Asian session. While it fell against the greenback and the yen, it held steady against the franc. Against the euro, it rose.

The pound firmed to a 5-day high of 1.3835 against the greenback, from a low of 1.3767 hit at 3:00 am ET. The pound is seen finding resistance around the 1.40 mark.

The pound reversed from an early low of 145.08 against the yen, rising to 146.14. On the upside, 148.00 is seen as the next resistance level for the pound.

Survey from Nikkei showed that Japan services sector continued to expand in February, albeit at a slightly slower pace, with a services PMI score of 51.7.

That's down from 51.9 in January, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The pound edged up to 1.2953 against the Swiss franc, reversing from a low of 1.2898 seen at 4:15 am ET. If the pound rises further, it may find resistance around the 1.31 mark.

Having fallen to 0.8950 against the euro at 5:00 pm ET, the pound reversed direction and advanced to 0.8904. The pound is poised to target resistance around the 0.88 area.

Final data from IHS Markit showed that the Eurozone private sector expanded slightly less than initially estimated in February.

The composite output index dropped to 57.1 from January's near 12-year high of 58.8. The flash reading was 57.5. Looking ahead, Markit's U.S. services PMI and ISM non-manufacturing composite index for February are scheduled for release in the New York session.

Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more Sterling vs Yen Charts.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more Sterling vs Yen Charts.