Rate expectations boost Pound
The Pound climbed to a two month high against the dollar on Monday as the chances of a near term rise in UK interest rates climbed despite a report that suggested UK manufacturing growth slowed in March.
The UK purchasing managers’ index fell from 55.4 in February to 54.4 in March, a larger than expected fall.
Meanwhile, data revealed a sharp rise in UK mortgage equity withdrawal in the fourth quarter. reflecting UK households increasing willingness to translate rising household wealth into a more liquid form of spending power.
The pound rose 0.2 per cent to $1.9730 against the dollar and climbed 0.2 per cent to £0.6779 against the euro.
Elsewhere, the euro was little changed against the dollar at $1.3350 as investors shrugged off a slight dip in the eurozone manufacturing purchasing managers’ index in March.
Analysts said the market’s focus would switch to the US Institute of Supply Management’s survey of the US manufacturing sector, due at 14.00GMT, for clues as to the future path of US interest rates.
The yen was flat at Y117.80 against the dollar and unchanged at Y157.30 against the euro, showing little reaction to Japan’s quarterly Tankan report, which showed Japanese business confidence deteriorating for the first time in a year.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The UK purchasing managers’ index fell from 55.4 in February to 54.4 in March, a larger than expected fall.
Meanwhile, data revealed a sharp rise in UK mortgage equity withdrawal in the fourth quarter. reflecting UK households increasing willingness to translate rising household wealth into a more liquid form of spending power.
The pound rose 0.2 per cent to $1.9730 against the dollar and climbed 0.2 per cent to £0.6779 against the euro.
Elsewhere, the euro was little changed against the dollar at $1.3350 as investors shrugged off a slight dip in the eurozone manufacturing purchasing managers’ index in March.
Analysts said the market’s focus would switch to the US Institute of Supply Management’s survey of the US manufacturing sector, due at 14.00GMT, for clues as to the future path of US interest rates.
The yen was flat at Y117.80 against the dollar and unchanged at Y157.30 against the euro, showing little reaction to Japan’s quarterly Tankan report, which showed Japanese business confidence deteriorating for the first time in a year.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Wise Money @ 2:30 PM
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