Forex: GBP/USD – Sterling edges higher

on Jul 1, 2013
Listen Monday July 1th: The pound has traded higher today, after falling to a one-month low against the USD at 1.5165 on Friday after the news that UK GDP had expanded at an annual rate of just 0.3 percent in the first quarter, well short of the preliminary estimate of 0.6 percent growth. The UK’s Office for National Statistics further reported that the UK economy has contracted by 7.2 percent since the 2008 financial crisis, compared to earlier estimates of a 6.3 percent decline.

Today however, the UK Markit Manufacturing PMI final data for June came out at 52.5 points, up from the revised reading of 51.5 for May. The index stands at its highest level since May 2011 and the period March to June had the strongest continuous growth in British manufacturing since the second quarter of 2011.

UK Consumer Credit, released today by the Bank of England, rose by £700 million in May, beating expectations for no change from April’s £600 million.
Also from the BoE today, UK Mortgage Approvals were reported at 58,242 in May, well up on the 54,354 logged in the previous month and expectations for an increase to 55,050. But Net Lending to Individuals fell in May to £1.0 billion, as against £1.4 billion in April and the forecast for an unchanged reading.
Since these releases, the pair has climbed from its daily low of 1.5183 to 1.5248.
In the US calendar later today, Makit Economics will release the US Manufacturing Purchasing Managers Index just before 14:00 BST, followed by construction spending data for May and ISM Manufacturing PMI at 15:00 BST.