UK manufacturing PMI sends pound soaring
- Last Updated on 09 February 2012
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The GBP saw its recent downward trend reverse itself in trading yesterday, following positive news that helped boost confidence in the British economic recovery. The UK Manufacturing PMI came in well above expectations and resulted in gains for the pound versus the USD and CHF. While it is too soon to say whether the figure was an actual signal that the UK was heading toward recovery, it was enough to get investors to move to riskier assets in trading throughout the day.
Today, pound traders will want to pay attention to the UK Construction PMI set to be released at 09:30 GMT. Analysts are predicting the PMI to come in at 51.8, which if true would signal expansion in the British construction industry and may help the pound extend yesterday's bullish momentum.
Traders will still want to take note that the European economies are extremely fragile. While positive news is likely to help currencies like the pound and euro in the short term, the overall trend is still overwhelmingly bearish and the markets could reverse themselves at any moment.