The ISM manufacturing index rose from 48.9 to 52.9 in August, crossing the 50 threshold which signifies an expansion. This is the first time since January 2008 the US has recorded an expansion and indicates that the Fed's "cash for clunkers" initiative combined with record low interest rates, have worked to stimulate the US economy.

Reports from China and the eurozone have also recorded an expansion in manufacturing this month, with the sterling exchange rate suffering losses as the UK recorded a contraction. Pending home sales also improved by 3.2% in the US, indicating a recovery in the property sector.

Exchange rates for the US dollar are currently trading at GBP0.6190 and EUR0.7027.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.