Sterling erases losses after strong UK PMI data
Sterling erased earlier losses versus the euro and dollar on Monday after manufacturing PMI data came in higher than expected, slightly denting expectations for rate cuts from the Bank of England
PMI data for February came in at 51.3 compared to a 51.0 consensus forecast by economists polled by Reuters showing British manufacturers ramped up prices at their fastest pace on record.
By 0937 GMT the pound was trading at $1.9857, trimming earlier losses. Against the euro it was steady at 76.43 pence.
However analysts said the data did not change overall expectations for further Bank of England rate cuts.
"It's held up a bit better than expected but it's still only barely above recession levels so you can't really take much solace from it," said Daragh Maher, senior currency strategist at Calyon.
Britain's FTSE 100 was little changed after the UK PMI data. It was still down 1.4 percent.
Source Supplied by Reuters.