British Pound (GBP) Soars to 3-week High versus USD; Hits Monthly High against EUR
The British Pound made strong gains against the US Dollar and Euro on Tuesday after it received a boost from better than expected industrial and manufacturing production data and a positive report by the British Chambers of Commerce.
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Early in Tuesday’s session Sterling received support from a report released by the Recruitment and Employment Confederation which showed that UK pay growth increased at its fastest pace in seven years at the end of the first quarter. The index for wage growth rose to 62.2 in March, the highest figure recorded since July 2007.
Later in the morning the Pound surged against the US Dollar and Euro as data released by the Office for National Statistics showed that the UK’s industrial and manufacturing production rose strongly in February.
Industrial output recorded its strongest rise since last summer. Manufacturing output soared by 1% smashing economist predictions for an increase of 0.3%. The overall and wider measure of industrial production output increased by 0.9%, the biggest rise recorded since June 2013.
“Manufacturing output headed higher buoyed by a strong pick up in the pharmaceuticals, transport and food sectors. Output now stands at its highest level in more than two and a half years with companies reporting good trading conditions both at home and in overseas markets. All manufacturing indicators are lining up for a strong first quarter growth rate, highlighting that industry remains a vital cog in the UK’s continuing recovery,” said the chief economist at EEF.
Sterling was also supported by a report released by the BCC which showed that the UK’s service sector’s sales and exports are at record high levels.