020 7898 0500Sterling jumped to a nine month high against the euro yesterday following the news that the European Central Bank (ECB) had decided to cut interest rates to an all-time low. Positive sentiment had been bolstered by a number of good UK data releases during the week, notably the construction and services Purchasing Managers Index (PMI) figures. The PMI figures showed that both sectors were expanding faster than expected with the services sector showing the fastest expansion in 16 years. The National Institute of Economic and Social Research (NIESR) and Confederation of British Industry (CBI) both raised their growth forecast for the UK, giving further support to the currency. In other news, the Bank of England voted to keep the official bank rate and current levels of quantitative easing on hold. Little data is scheduled to be released from the UK today but with key data released in the US there is still the potential for a lot of movement in exchange rates. Call your trader now for the latest sterling rates, after a positive week.
