Currency Note Sterling

Will today’s UK service sector data boost sterling?

By Smart Currency October 3rd, 2013

Sterling managed to achieve further gains early on after purchasing managers index data from the construction sector followed in the footsteps of Tuesday’s manufacturing in showing expansion in the sector. As with the manufacturing sector, the construction figures fell slightly short of market estimates but still showed solid expansion helping to provide further evidence that the UK’s economy is recovering. Notably, this result, alongside the dire situation with the US government shutdown, helped push sterling back to near the recent nine month highs against the US dollar. Today, the main data set to possibly influence the pound is the third in the PMI series, this time coming from the services sector. Further positive results to complete the set would likely see a more significant reaction in the markets as the services sector makes up for 75% of the UK’s output. Call your trader now for the latest on sterling, as it still holds near its highest levels.