The pound continued to push higher today, continuing on from yesterday’s rally and pushing to a 7 week high after the PMI( purchasing managers index) recorded its biggest jump in history.
At 6.57pm (GMT) the British currency was trading at US1.3433 up fromUS1.3301 in yesterday’s trading.
The surprise PMI figures may be enough for the UK to head off a predicted recession later in the year in the wake of the aftershocks of Brexit
"The prospect of sterling strength is on the horizon as yesterday’s PMI figures suggest that the reported fall in activity following the EU referendum may have been a blip," said Ranko Berich, from Monex Europe.
"They do change the likelihood of a severe economic contraction in the third quarter, which previously seemed all but assured for many observers," he added.
Overall, the British economy has not suffered as much as most feared after Brexit, with a number of other sectors showing positive signs which may give the pound a further boost in the nearest future,
“Two months have now passed since the UK voted to leave the EU and its effects are beginning to emerge. The consumer is unruffled. Strong employment and inflation-beating wage growth have supported spending. Businesses are waiting to see what happens but are less worried than immediately after the vote. Property markets show mixed signals. Most house price measures are up, most commercial property measures are down,” note RBS in a weekly economic briefing.
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