The European session on Monday was a busy one after a slew of PMI data from the Euro zone as well as from the United Kingdom.
The British pound was the best performer today after the U.K. PMI registered its best reading in nearly 20 years in August, hitting 57.2 and beating forecasts. Also supporting the pound is a huge deal about to be signed between Vodafone and Verizon.
Sterling hit a two-month high against the euro after the data, with EURGBP tumbling to 84.71 pence, down 50 pips since Friday’s close. GBPUSD surged to $1.5592 up 80 pips since Friday’s close.
Another key event for sterling will be the Bank of England policy setting meeting later this week. If the BoE sticks to its dovish script while there are expectations that the Fed will starts to taper soon, then the pound will likely fall lower versus dollar.
Euro help steady against the dollar today after upbeat Euro zone PMI numbers showed factory activity in the single currency bloc expanded at the fastest pace in more than two years. The Final PMI showed an increase to 51.4 in August, the highest since June 2011.
EURUSD traded slightly higher from the Asian session and hovered at $1.3210. Focus now turns to the European Central Bank meeting this week. However, interest rates are expected to remain unchanged at 0.50 percent.
The yen fell against its major peers after reacting negatively to news that Japan’s Prime Minister Shinzo Abe won backing for a sales-tax # increase as part of Abenomics. Abe’s policies for boosting the economy have tended to weaken the currency.
The dollar was up 1.2 percent to its highest since August 2 as USDJPY hit 99.41 and pulled well away from last week’s trough of 96.80 yen. EURJPY gained over 1 percent to 131.37 yen.
The European session on Monday was a busy one after a slew of PMI data from the Euro zone as well as from the United Kingdom.
The British pound was the best performer today after the U.K. PMI registered its best reading in nearly 20 years in August, hitting 57.2 and beating forecasts.
Also supporting the pound is a huge deal about to be signed between Vodafone and Verizon.
Sterling hit a two-month high against the euro after the data, with EURGBP tumbling to 84.71 pence, down 50 pips since Friday’s close. GBPUSD surged to $1.5592 up 80 pips since Friday’s close.
Another key event for sterling will be the Bank of England policy setting meeting later this week. If the BoE sticks to its dovish script while there are expectations that the Fed will starts to taper soon, then the pound will likely fall lower versus dollar.
Euro help steady against the dollar today after upbeat Euro zone PMI numbers showed factory activity in the single currency bloc expanded at the fastest pace in more than two years. The Final PMI showed an increase to 51.4 in August, the highest since June 2011.
EURUSD traded slightly higher from the Asian session and hovered at $1.3210.
Focus now turns to the European Central Bank meeting this week. However, interest rates are expected to remain unchanged at 0.50 percent.
The yen fell against its major peers after reacting negatively to news that Japan’s Prime Minister Shinzo Abe won backing for a sales-tax # increase as part of Abenomics. Abe’s policies for boosting the economy have tended to weaken the currency.
The dollar was up 1.2 percent to its highest since August 2 as USDJPY hit 99.41 and pulled well away from last week’s trough of 96.80 yen. EURJPY gained over 1 percent to 131.37 yen.
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