6 May 2014
GBP/USD at five-year highs on strong services numbers
FXStreet (London) - Sterling has rallied strongly through the morning following further encouraging signs that UK economic momentum remains strong.
Sharp increase in services activity
The April Markit/CIPS UK Services PMI survey indicated that services outperformed consensus expectations last month. After accounting for seasonal factors, the headline Business Activity Index recorded 58.7 in April, beating consensus expectations of a 57.6 print. The business activity index climbed from 57.6 March and marked the sharpest increase in activity of 2014 so far. Growth has now been recorded for 16 straight months, and exactly a third of the survey panel signalled an increase in activity since March.
Market activity higher
The Markit survey reported that a key pillar of rising activity during April was higher new business. Despite slipping to an 11-month low, new work rose at a rate that remained historically sharp. Market activity was reportedly higher, with clients willing to commit to new contracts against the backdrop of an increasingly positive economic climate. There were reports that previous and current marketing campaigns were bearing some fruit, while new product launches provided additional support to sales drives.
Five-year highs for cable
GBP/USD has climbed to USD1.6944, holding close to five-year highs at USD1.6952 hit after the positive services data. With US trade balance data the only top drawer release due for release this afternoon, there is little to push cable far from its multi-year highs.
Sharp increase in services activity
The April Markit/CIPS UK Services PMI survey indicated that services outperformed consensus expectations last month. After accounting for seasonal factors, the headline Business Activity Index recorded 58.7 in April, beating consensus expectations of a 57.6 print. The business activity index climbed from 57.6 March and marked the sharpest increase in activity of 2014 so far. Growth has now been recorded for 16 straight months, and exactly a third of the survey panel signalled an increase in activity since March.
Market activity higher
The Markit survey reported that a key pillar of rising activity during April was higher new business. Despite slipping to an 11-month low, new work rose at a rate that remained historically sharp. Market activity was reportedly higher, with clients willing to commit to new contracts against the backdrop of an increasingly positive economic climate. There were reports that previous and current marketing campaigns were bearing some fruit, while new product launches provided additional support to sales drives.
Five-year highs for cable
GBP/USD has climbed to USD1.6944, holding close to five-year highs at USD1.6952 hit after the positive services data. With US trade balance data the only top drawer release due for release this afternoon, there is little to push cable far from its multi-year highs.