Sterling outperforms on strong UK manufacturing data

September 2, 2013

The euro was trading higher against the dollar on Monday after data showed the Euro-zone manufacturing sector expanded more-than-expected in August. 

EURUSD traded above the key $1.32 level, hitting a session high of $1.3225, off last week’s trough of $1.3172.

However against the British pound, euro weakened to a two-month low after strong U.K. manufacturing PMI data which increased at its fastest pace in over two years, lifting expectations that an economic recovery is gathering pace in the third quarter.

EURGBP slid to 84.71 pence, down 50 pips since Friday’s close. GBPUSD surged to $1.5592 up 80 pips since Friday’s close.

Also propping up sterling is a deal by Vodafone and Verizon Wireless.   It is expect4ed that the British company will sell its stake in Verizon Wireless, which could involve bringing over £30 billion of cash back into the U.K.

The yen is weaker across the board today as a result of Japan’s Prime Minister’s bond stimulus measures to boost the economy. One of these measures includes a sales-tax increase for which he approved backing today. Stimulus measures tend to have a weakening effect on the yen.

USDJPY surged to 99.41, the highest level in a month while EURJPY gained over 1 percent to 131.37 yen. 

Looking ahead to the U.S. session, there are no data releases due to markets being closed in the U.S. and Canada. A quiet session is expected.

Meanwhile focus will turn to central bank meeting from the ECB and BOE later this week, as well as the BOJ.

Publication source
FxNet information  FxNet reviews

January 17, 2017
ECB policy was focused on avoiding deflation trap
Asian stock markets were mixed, with Japan and ASX heading south amid reports that U.K. Prime Minister May will announce plans for a hard Brexit at today’s keynote speech. Yen strength is also continuing to put pressure on the Japanese markets...
January 17, 2017
Trump's inauguration and May's speech to shape up the markets this week
Markets started the week with no sharp changes and lower trading volumes, due to the Martin Luther King Day in the US, ahead of the crucial monetary policy decisions of the ECB and BoC...
January 17, 2017
Yen strengthens as markets jittery ahead of May's press conference
The U.S. dollar was trading weak yesterday in a holiday thin trading session. The Japanese yen strengthened strongly in the early hours today as investors turn cautious ahead of the British PM... Trade Rating
OANDA Rating
Fort Financial Services Rating
 FXTM Rating
Tickmill Rating

TopOption Rating
IQ Option Rating
TropicalTrade Rating
24option Rating
Binary Brokerz Rating
EZTrader Rating