Pound Rises On Robust Flash U.K. PMI Data
22 August 2024 - 9:39AM
RTTF2
The British pound strengthened against other major currencies in
the European session on Thursday, after U.K. private sector
activity logged accelerated growth in August, supported by a robust
upturn in new order intakes.
Data from the flash survey results published by S&P Global
showed that the manufacturing Purchasing Managers' Index climbed to
52.5 in August from 52.1 in July.
A reading above 50.0 suggests expansion in the private
sector.
The flash composite output index rose to a 4-month high of 53.4
in August from 52.8 in July. The score was forecast to rise to
52.9.
The services business activity index stood at 53.3 versus 52.5
in July, above the expected score of 52.8.
During August, service activity growth also rose to a 4-month
high, while manufacturing output advanced at the quickest pace in
twenty-six months, the survey said.
European stocks traded slightly higher, as a survey showed
Eurozone manufacturing PMI fell from 45.8 to an 8-month low of 45.6
in August, reinforcing investor bets on a September ECB rate
cut.
Overall business activity showed surprising strength in August
as a strong rebound in the bloc's dominant services industry offset
a deeper downturn among manufacturers.
The Sterling held steady against its major rivals in the Asian
session today.
In the European trading now, the pound rose to more than a
1-year high of 1.3129 against the U.S. dollar, from an early low of
1.3081. The GBP/USD pair may find its resistance level around the
1.32 area.
Against the euro and the Swiss franc, the pound advanced to
nearly a 3-week high of 0.8488 and a 2-day high of 1.1171 from
early lows of 0.8521 and 1.1120, respectively. If the pound extends
its uptrend, it is likely to find resistance around 0.83 against
the euro and 1.14 against the franc.
The pound edged up to 191.13 against the yen, from an early low
of 189.69. On the upside, the GBP/JPY is likely to find its
resistance around the 200.00 region.
Looking ahead, U.S. weekly jobless claims data, U.S. S&P
Global flash PMI data for August and U.S. existing home sales data
for July are slated for release in the New York session.
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