The Pound Sterling touched a 2-week peak versus the common currency Euro on the latest economic news which showed a PMI manufacturing reading of 56.1 for December, against expectations of a decline to 53.0. That makes growth in Britain’s manufacturing sector at a 2½ year high, the strongest reading since mid-2014. The Sterling also eked out a gain against the US Dollar, however the Pound is trading closed to last week’s 2-month trough.
As reported at 10:35 am (GMT) in London, the EUR/GBP was trading at 0.847 Pence, down 0.60%; the pair earlier hit a low of 0.8457 Pence while the daily peak was at 0.8531 Pence. The GBP/USD was up 0.13% to trade at $1.2293.
Pound Under Continual Pressure
In 2016, the Pound had lost 16% versus the greenback and 14% versus the Euro, the worst performance (annualized) in several years. Most of the losses incurred by the Pound came on the heels of the June 23rd Brexit vote. There is still concern about procedure for Britain’s withdrawal and that has weighed heavily on the Pound; given that, analysts say that even positive economic data is likely to only have fleeting positive impact on the currency. On Wednesday and Thursday, construction and services sector PMI data will be released, with analysts forecasting a slight rise and a slight fall, respectively, to 53.0 and 54.8 readings.