Sterling stable ahead of Construction PMI
4 March, 2014
As we enter the new month we also begin a full week of new data for the UK that will likely set the tone for the coming weeks. Sterling performed relatively well during February and finds itself less than 1% away from the high of the year so far against the likes of the Euro and the US Dollar.
The week kicked off with Euro-zone and UK manufacturing PMI figures which both out performed analysts expectations. This is now the 11th consecutive month that UK manufacturing has expanded with a figure if 56.9. A figure above 50 indicates expansion. At the same time an increase in mortgage approvals was also announced whilst net lending to individuals and consumer credit had both dropped slightly. Overall however the markets supported sterling after the announcements enabling it to recover its early morning losses. Market volatility was however limited as traders await the rest of the PMI figures due out this morning and tomorrow for the construction and services sectors.
Meanwhile on the other side of the globe, the RBA met for their March interest rate decision where a hold on the current 2.5% base rate was largely expected and was in fact announced without any significant statement. Subsequently the Aussie Dollar dropped slightly overnight against the pound and US Dollar.
Other than the UK PMI construction at 9:30am today is short of any notable data releases that could impact the markets leaving sterling particularly vulnerable to profit taking from its recent peaks and any potential shortfall on the construction figures which are forecast to have dropped from last month. With this in mind if you are looking to transfer money abroad in the near future you may wish to contact your currency broker sooner rather later to discuss maximising your transfer within the time period you are working to.
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