The purchasing managers’ index for the British manufacturing sector jumped to 57.2 points, indicating strong growth. It was expected to advance from 54.6 to 55.2 points in the month of August 2013. This is the highest score since the spring of 2011 – almost two and a half years.
GBP/USD was trading higher towards the publication, at 1.5550, after breaking above 1.55 at the wake of the new week. The pair jumped to a high of 1.5592. EUR/GBP continues falling, and it is now trading at 0.8474.
The gaps between the economies of the UK and the euro-zone are becoming somewhat more pronounced in the value of EUR/GBP. The euro-zone manufacturing PMI stands at 51.4: 6.8 is a big difference, reflecting a gap between strong and weak growth.
The UK economy has seen positive signs of late, with strong PMIs in Q3 and strong growth in Q2. However, the Bank of England pledged to keep low rates in order to support the economy.
This is the first of three PMIs. The next one is at the same time tomorrow. See how to trade the Construction PMI with GBP/USD.Get the 5 most predictable currency pairs