UK pound is heading higher today, gaining ground thanks to the latest manufacturing data. Manufacturing data surprised to the upside, and the sterling is getting a boost because of the news.
Many analysts expected manufacturing PMI for the United Kingdom to slip a bit, continuing the trend toward slower growth. However, October surprised everyone, with Markit reporting that manufacturing PMI had jumped to 53.2. This level is better than the expected 51.4 for October. Additionally, the UK manufacturing number underscores the fact that the economy in the United Kingdom is headed for recovery while the eurozone economy continues to struggle.
For now, the news is helping the UK pound. Sterling is higher almost across the board as the news is digested, and as traders consider that the United Kingdom might decide to leave the European Union. David Cameron has expressed defiance over additional contributions to the European Union, and there could be a referendum.
It’s going to be an interesting few months, but as long as the UK economy continues to show signs of improvement, the pound should enjoy continued support in currency trading.
At 11:48 GMT GBP/USD is up to 1.6000 from the open at 1.5968. EUR/GBP is down to 0.7809 from the open at 0.7830. GBP/JPY is up to 181.7620 from the open at 180.1450.
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