UK economic data is showing improvement, and that is helping push the pound higher against the euro. UK data is being contrasted with eurozone data, and the result is helping the pound.
PMI data for construction in the United Kingdom rose to 50.9, beating expectations. Last week, third quarter GDP data indicated that the United Kingdom had moved out of recession. All of this is contrasted with eurozone economic data. Once again, manufacturing in the eurozone shrank, and it loos as thought the 17-nation currency region is on the verge of recession.
With such contrasting stories, it is little surprise that the pound has the upper hand right now — at least against the euro. Against other major currencies, the pound isn’t faring so well. Pound is down against the US dollar, and moving only slightly higher against the Japanese yen.
If signs of economic improvement continue though, particularly in the United Kingdom and in the United States, risk appetite should help the pound. And, as long as there are concerns about the eurozone, the pound should continue to perform reasonably well against the euro.
At 13:10 GMT GBP/USD is down to 1.6047 from the open at 1.6125. EUR/GBP is lower, down to 0.8018 from the open at 0.8027. GBP/JPY is down to 129.3450 from the open at 129.2450.
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