Sterling gains on positive services data

<p>Sterling has seen strong gains after positive data for the UK services sector.</p>

The pound rose against the dollar and the euro today (June 5th) after the release of positive data regarding the state of the services sector in the UK.

A purchasing managers' index from Markit found the industry is expanding at its fastest pace in over a year, following the manufacturing and construction sectors into growth in the last few months.

Sterling rose 0.4 per cent to $1.5372 today in the wake of the data's release, while the single currency fell 0.1 per cent to $1.3073, reports the Financial Times.

The pound also rose against the euro and was up by 0.4 per cent to €1.1758. The euro remained steady against the dollar during today's trading.

After the UK economy grew by 0.3 per cent in the first three months of the year, the recent positive figures for the construction, services and manufacturing industries appear to suggest stronger growth could be on the cards for the rest of the year.

Sterling fell last month on the back of weak retail sales data for the UK, dropping by 0.5 per cent on May 22nd.

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