Pound euro exchange rate: GBP rises on surprise services PMI growth
The pound is trading higher than the euro today
This is the strongest rise since October 2017 and has been received positively by analysts at IHS Markit, the company that compiles UK PMI readings.
Markit’s Chief Business Economist Chris Williamson singled out the data as a reason for a Bank of England (BoE) interest rate hike next month.
He said: “Stronger growth of service sector activity adds to signs that the economy rebounded in the second quarter and opens the door for an August rate hike, especially when viewed alongside the news that inflationary pressures spiked higher.”
But he added: “It remains encouraging yet also surprising that current business activity continues to show such resilience amid relatively moribund confidence regarding the year ahead outlook.
“The survey once again highlights how the business outlook remains clouded by widespread concerns about the impact of Brexit uncertainty in particular.”