RationalFX : Sterling moved higher against both EUR and USD on Friday, as the UK manufacturing sector showed a post-election recovery…..
The Markit Manufacturing PMI posted it’s fasted rise in output for 10 months as data surpassed expectations of 49.7 to read 51.9. The uplift in data is good news for the UK and has raised expectations of a Q1 growth recovery.
Despite the positive manufacturing data, gains in Sterling were capped as investors remain cautious ahead of UK-EU trade talks next week.
The US dollar moved lower on Friday, following a survey of purchasing managers showed US business activity in manufacturing and services stalling for February.
The IHS Markit flash services sector Purchasing Managers index fell to it’s lowest level for six and a half years to read 49.4, despite being forecasted to read 53. The reading is significant as it’s the first time the sector, which accounts for over half of the US economy, has fallen into contraction since 2016.
Source : ETFWorld.co.uk