Pound Down vs. Euro on Manufacturing PMI, Stable vs. Dollar
The unexpected decline of the UK manufacturing index led to drop of the Great Britain pound against the euro. Britain’s currency was little changed versus the US dollar and the Japanese yen.
The Markit/CIPS UK Manufacturing PMI fell to 48.4 in September, while analysts expected it to be stable near 49.5. A value below 50.0 indicates decline of an industry. The report said that manufacturing contracted as ”order inflows remained lacklustre and job losses continued to mount” and ”cost pressures also surged higher”. The pound fell versus the euro because of the negative domestic news, but also on the positive news from Spain.
EUR/USD advanced from 0.7952 to 0.7980 as of 12:04 GMT today. GBP/USD was flat near 1.6137.
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Earlier News About the Great Britain Pound:
- UK Pound Gains on European Safe Haven Status (2012-09-26)
- UK Pound Gains as Forex Traders Dial Back the Euphoria (2012-09-17)
- Falling Unemployment Claims Improve Outlook for Pound (2012-09-12)
- Improving UK Trade Balance & House Prices Make Sterling More Appealing (2012-09-11)
- UK Pound Remains Mostly Steady Against Majors (2012-09-06)