Positive PMI boosts sterling

first_img Positive PMI boosts sterling Tags: NULL Wednesday 3 November 2010 9:13 pm whatsapp whatsapp STRONGER-than-expected figures on the UK service sector yesterday caused the pound to rise to its highest level against the dollar and the euro for nine months and reduced the chances that the Bank of England will opt to engage in a second round of quantitative easing to boost the economy. The purchasing managers’ index (PMI), which measures activity at UK service sector companies, beat expectations that it would fall to 52.5 by rising to 53.2, up from 52.8 in September. It was the highest level for the PMI since June, although the sector has lowered its expectations for the coming months because it is worried about the effect of government spending cuts. Employment in the sector, which accounts for three-quarters of the UK economy, may have slightly reduced, said the report. Sterling jumped 0.5 per cent on the news, to $1.6128 against the dollar and £0.8705 against the euro.The strong figures come on the back of last week’s third-quarter GDP results which showed the economy had grown by 0.8 per cent. Together these have reduced fears of a double dip recession in the UK and mean that the Bank of England will almost certainly not follow the Fed’s lead and opt for a second round of quantitative easing at its Monetary Policy Committee (MPC) meeting on Thursday. Howard Archer at IHS Global Insight, said: “We suspect that the resilience of growth in the third quarter and decent survey evidence for October will convince most MPC members that there is no need at this stage at least to provide further support to the economy.” Sharecenter_img KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com Show Comments ▼ More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comWhy people are finding dryer sheets in their mailboxesnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comlast_img

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