Pound Extends Rally Against Most Majors Amid U.K. Manufacturing PMI

Pound Extends Rally Against Most Majors Amid U.K. Manufacturing PMI




In early European deals on Monday, the pound has been extending its rally against most major currencies as the U.K. manufacturing PMI rose to a 10-month high in March.
Data from a survey by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed that the seasonally adjusted purchasing managers' index for the manufacturing sector rose to a ten-month high of 52.1 in March from 51.5 in February, which was revised up from 51.2. The sector expanded for the fourth consecutive month.
The pound is trading at a fresh multi-month high of 1.6065 against the dollar with 1.610 seen as the next upside target level. At Friday's close, the pound-dollar pair was quoted at 1.6002.
The pound that closed Friday's trading at 1.4447 against the Swiss franc is now trading at an 11-day high of 1.4494. The next upside target level for the pound-franc pair is seen at 1.460.
The franc declined as the Swiss retail turnover growth slowed sharply to 0.8 percent annually in February from 4.7 percent in January.
In nominal terms, sales were down 2.2 percent year-on-year, partially offsetting last month's 1.5 percent growth.
Real, seasonally adjusted turnover in the retail sector fell by 1.3 percent in February compared with January. In nominal terms, sales dropped 2.6 percent.
Against the euro, the pound is trading at an 11-day high of 0.8315, compared to Friday's close of 0.8341. If the pound gains further, it may likely target the 0.830 level.
Eurozone manufacturing downturn worsened as initially estimated in March, final data from Markit Economics showed today. The Purchasing Managers' Index fell to 47.7 in March, a three month low, from 49 in the previous month. The final reading matched flash estimate.
The pound that reached a 6-day high of 133.29 against the yen in early Asian deals pulled back slightly in late trading and has been showing choppy trading in early European deals. As of now, the pound-yen pair is worth 132.90, compared to last week's close of 132.61.
Looking ahead, the U.S. Institute of Supply Management's manufacturing index for March and construction spending for February are due for release in the New York morning session.



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