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5 Jun 2013
Flash: GBP/USD close to 3 week high - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that GBP is trading near 3-week highs against the euro and remains within spitting distance of the 3-week high set against USD on Monday near $1.5375.
They feel that a move above $1.5400 is needed to lift the outlook and the spur for sterling today comes from the third PMI reading this week to better expectations. Today was the important service sector, which rose to 54.9 from 52.9 and is the strongest since March 2012. They write, “Of note, new business rose to a 3-year high (57.2 vs. 54.2). The BOE was not expected to alter rates or renew gilt purchases at the conclusion of the 2-day MPC meeting tomorrow, which is Governor King's last meeting. He is leaving as a nascent recovery seems to be taking hold.”
They feel that a move above $1.5400 is needed to lift the outlook and the spur for sterling today comes from the third PMI reading this week to better expectations. Today was the important service sector, which rose to 54.9 from 52.9 and is the strongest since March 2012. They write, “Of note, new business rose to a 3-year high (57.2 vs. 54.2). The BOE was not expected to alter rates or renew gilt purchases at the conclusion of the 2-day MPC meeting tomorrow, which is Governor King's last meeting. He is leaving as a nascent recovery seems to be taking hold.”