The pound continued its winning streak against the US dollar yesterday, reaching a 400-day high following better-than-expected UK private sector activity, taking its weekly gains to 1.85%.
Should you have any upcoming transactions in the US, speak to your account manager today to benefit from the pound’s growth and lock in a forward contract for the year ahead.
The S&P Global Flash UK composite purchasing managers’ indices, which measure the health of the manufacturing and services sectors, rose to 53.4 in August from 52.8 in July. This reading was the highest since April, and sterling rose 0.2% immediately after.
In the euro area, yesterday’s PMI results revealed that the manufacturing sector performance sharply contracted in August, falling to 45.6 from 46 in July, while the services sector rose from 52 to 53.3, marking the strongest pace of expansion in activity since April.
It was a similar story in the US as the composite PMI fell slightly to a four-month low of 54.1 in August but remained above expectations of 53.3. As the reading remains above 50, it represents the 19th period of expansion for US business activity.
US stocks continued to fluctuate on Thursday ahead of Federal Reserve chair, Jerome Powell’s speech this afternoon where he is expected to shed light on policymakers’ sentiment ahead of the September meeting.
British tycoon, Mike Lynch was confirmed dead by search and rescue teams off the coast of Sicily yesterday after he and six others went missing after the tech entrepreneur’s luxury yacht capsized during a violent storm on Monday. The bodies of four others were also recovered but his 18-year-old daughter is still unaccounted for.
In the Asian session this morning, the Japanese inflation rate held steady at 2.8% in July, remaining unchanged for the third consecutive month. The Bank of Japan reaffirmed its commitment to raise interest rates if inflation touched the 2% target.
Today remains relatively light on the data front, with only Fed chair, Powell’s speech due at 3pm (UK time). Next week, the spotlight will be on personal spending and durable goods orders for the US, German business climate, consumer confidence and inflation rate and inflation for the euro area which is due on Friday.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your account manager on 020 7898 0541 to get started.
