UK manufacturing gives sterling a boost

Today’s UK manufacturing data has given the Pound a welcome boost, with renewed optimism that a recession may yet be averted.

The manufacturing sector returned to growth in January, according to the Purchasing Manager Index (PMI) figures released this morning. This is the first time industrial orders have risen for 6 months, and has eased fears that the UK economy is slipping back into recession.

Sterling has reacted positively, gaining 1c against the US Dollar and 0.3c against the Euro.

Tomorrow morning we have Eurozone producer inflation and UK construction data; today has now seen the best rate for sending US dollars abroad since mid-November.