Sterling makes gains on manufacturing

Sterling managed to make back some of last week's losses as a new survey revealed good manufacturing activity.

Sterling started the day up at £1.88955 and €1.48165 after the CIPS/RBS manufacturing Purchasing Managers' Index was released.

The index rose 1.4 points above the downwardly revised August level and above many expectations.

The surprise rise in the index has fuelled speculation that the Bank of England may raise interest rates to five per cent, although it is thought the bank will not surprise the markets with a hike this week.

Sterling was also helped along by housing data showing the fastest growth in prices in two years.

In the US, the dollar suffered as Institute for Supply Management's index of service industries is expected to fall one point. A survey of leading economists by Bloomberg also predicts that this Friday's US labour department report will show a fall in job creation growth.

This has prompted some to expect the Federal Reserve to consider dropping interest rates

Please note: All rates are subject to change, for the latest up-to-date rates check our Currency converter

Bookmark and Share

Contact Us

Currency Converter

Today's Currency News

The just out BBA data has shown a rise in the number of mortgage approvals for June, casting some...

Currency Rates

US Dollars 1.7037
Euros 1.2657
Swiss Francs 1.5374
Australian Dollars 1.8030
South African Rand 17.893
GBP indicative mid-market rate at 18:50. Please call for quote.