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.
Learn about the sterling and forex trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.