Since Tuesday, the British Pound edged slightly higher against the US Dollar and recorded marginal gains as a better-than expected reading on the state of the manufacturing sector failed to spur traders into action. Britain’s manufacturing sector grew at the fastest pace in three years last month, as the Markit’s Purchasing Managers’ Index surged from 54.2 in March to 57.3 last month, compared with analysts’ expectations for a 54 reading and marking the 9th consecutive month of expansion.
On Wednesday, Crude Oil prices bounced back in early sessions as a decline in US inventories underpinned the market, although a dip in compliance with OPEC efforts to reduce output and near record supplies capped gains. The American Petroleum Institute showed that crude inventories fell by 4.2 million barrels a day before, in the week ended April 28 to 528.3 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels. OPEC members will meet on May 25 in Vienna to decide whether to extend the cuts through the second half of the year.
Meanwhile, the New Zealand Dollar rose to a one week high of 0.6969 against the Dollar and was among the best-performing major currencies in Asia after data showed that the country’s unemployment rate fell to 4.9% in the first quarter to its equal-lowest of the past eight years. The kiwi’s gains also came in the wake of a rise in global dairy prices at an international auction. The auction results can affect the New Zealand Dollar as the dairy sector generates more than 7% of the country’s gross domestic product.