Pound to Euro & Rupee Exchange Rates Gain On Positive UK PMI Construction Data

September 3, 2013 - Written by Ben Hughes

STORY LINK Pound to Euro & Rupee Exchange Rates Gain On Positive UK PMI Construction Data

Evidence mounts that the British economy is healing following this morning’s positive UK PMI Construction survey. The news has sent GBP EUR higher, but Sterling has lost ground against the Australian Dollar overnight following the Reserve Bank of Australia’s failure to cut domestic interest rates.

The Pound euro exchange rate (GBP/EUR) is currently trading up by 0.32% at 1.1825 GBP/EUR. The euro Pound exchange rate is currently trading at 0.8457 (EUR/GBP).

The Pound Sterling has continued its recent renaissance, climbing against all of the other majors with the exception of the Australian Dollar during early trading today. The Pound has gained further support this morning, following a highly encouraging start to the week, thanks to this morning’s Markit/CIPS Purchasing Managers Index survey of the construction sector of the UK economy which revealed that this key area of the British economy is currently expanding at its fastest level for some six years. The figure provides further evidence that the UK economy is healing following the trauma of the 2007/08 global credit crisis. The news sent the Pound euro exchange rate (GBP/EUR) up to its highest level for several months at 1.1837 earlier.

Meanwhile, the Pound Australian Dollar exchange rate (GBP/AUD) has eased somewhat since this morning’s Reserve Bank of Australia policy announcement which saw the Antipodean nation’s central bank maintain interest rates at their current 53 year low of 2.50%. Price action for the GBP AUD exchange rate in the wake of the release saw the pair dip to 1.7255, suggesting that a fair proportion of investors had been expecting the RBA to trim rates once again.

Elsewhere, the Pound Indian Rupee exchange rate (GBP/INR) has climbed by over 3% so far today thanks to continuing fears regarding the state of the Indian economy. Yesterday’s HSBC Purchasing Managers Index survey of revealed that conditions in India’s manufacturing sector were at their lowest ebb for 4 ½ years. The GBP INR exchange rate is currently trading above the 106.00 level and the forecast for the Rupee from the majority of analysts is highly negative.

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