Pound continues to climb on positive outlook

7 September, 2016

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,” noteВ RBSВ in a weekly economic briefing.


Source link  
RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...

Gold steady ahead of key news

The gold price is trading slightly higher today as the market awaits the senate testimony later today from Jeremy Powell who is Donald...


Gold looks to go past $1300

The gold price remains well supported today after yesterday’s stellar gains on the back of a less than convincing speech from The US Federal Reserve...

Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

US dollar hit from 2 sides

The US dollar is under pressure against the major currencies today as fears grow over the possibility of tax reform as well as disastrous results...


Australian dollar has further to fall

The Australian dollar is under further pressure today after yesterday’s spectacular plunge which seems to have put to bed any interest rate hike...

Gold technical review

The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain...

Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

  


Share: