Fears of recession fall back, sterling rides higher

The Pound has continued to climb, as the manufacturing sector expanded again in February. Although not as much as expected, the increase shows that the UK is slowly heading away from a double-dip recession danger zone. Monday’s services sector data, which accounts for a larger portion of UK output will be more revealing.

In contrast, the Eurozone unemployment level has hit a new record high today, German manufacturing growth has slowed, and Spain’s factory decline has put the country on course for a new recession.

Not surprisingly, Euro exchange rates have improved again, with the single currency cheaper after the data releases.

In the US and Canada today, mixed data has held exchange rates steady.