Foreign Exchange Daily Market Update 01/09/2016

Thu, September 01, 2016

Pound Surges As UK Manufacturing Grow

The Pound rose for a second day versus the Dollar after a data released which showed U.K. manufacturing unexpectedly grew in August, boosting confidence that the resilience of the economy since the June Brexit vote may be sustained.

Sterling reached its highest level in four weeks against the Euro. PMI Manufacturing rose to 53.3 last month, from a revised 48.3 in July. The forecast for this outcome was 49.

While concern that output would slow has already prompted the BOE to cut its key interest rate to a record low and restart asset purchases, the manufacturing data are the latest to signal that Britain’s fortunes outside the EU may not be as drastic as some economists expected, at least in the short term.

The Pound rose 0.8% to 1.3246 against the Dollar as of 9:37 a.m. London time, adding to Wednesday’s 0.4% rise. Sterling strengthened 1% to 1.1889 against the Euro.

Data to look out for today.

09:30: GBP Market PMI Manufacturing

13:30: USD Initial Jobless Claims

15:00: USD ISM Manufacturing

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PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

Data Releases