The currency markets responded positively to two surprise data releases in the UK economy yesterday. The first was a ‘flash’ reading of Services PMI, which boosted sterling by almost 1% in the space of two hours.
More impressively, sterling held onto those gains despite equally positive data from the eurozone, such as the ZEW Economic Sentiment Index for Germany also improving fast.
The additional news that better-than-expected tax receipts mean that the government has extra cash to play with in the Budget next month helped to support the pound throughout the day.
To lock in this excellent rate, back to the post-referendum average for GBP/EUR, call your trader on 020 7898 0541.
The S&P Global CIPS Services PMI announcement was a preliminary reading of business optimism for UK services. Indeed it is a report that I contribute to.
However, only a few hours later the CBI’s business survey took some shine off that, showing that order books were disappointing last month. So good news cannot be relied on.
There are several high profile and potentially market moving data releases this week, including inflation from across the EU, which could all move the market.
So do consider calling your trader to talk about locking in yesterday’s good news.
