On Thursday, the Sterling rose against the Dollar with more upbeat data underlining UK economy’s post-Brexit resilience which helped the Pound make the most of a retreating greenback.
The turnaround was completed as unspectacular weekly US jobs figures weakened the Dollar ahead of non-farm payrolls data today and left Sterling at $1.2432, up 0.9% and on course for its best day against the US currency since beginning of December. Moreover, Sterling lost against the Euro at 85.27 pence, down 0.3% on the day, and lost 0.8% against the Yen at 143.32.
Chris Turner, ING’s head of foreign exchange strategy said to Reuters: “Pound lifted us above $1.23 in the morning then the tailwind (from the weak Dollar) came in the mid-afternoon.” Adding: “The US data seemed ok to me, but I think the market has just found itself too long against the Dollar and has seen a bit of a correction.”
The UK services Purchasing Managers’ Index (PMI) grew last month at a fastest rate since mid-2015 beating all forecasts and a record of 2.69 million new cars were also sold in Britain in 2016, according to data this week.
Signs there are no shown impact yet from the UK’s soon-to-start Brexit negotiations even though caution surrounding the impending Brexit negotiations continued to cook in the background. Norway’s prime minister gave a frank warning that Britain lacked experience in international negotiations and said feared “a very hard Brexit”.