Forex News: Pound Appreciates Amid Better-than-expected U.K. PMI Data

Pound Appreciates Amid Better-than-expected U.K. PMI Data

(RTTNews) - The pound firmed against its major counterparts in the European session on Tuesday, as the U.K. private sector activity returned to expansion in February for the first time since July 2022.

Flash survey data from S&P Global/Chartered Institute of Procurement & Supply showed that the composite output index rose to 53.0 in February from 48.5 in January. The score was expected to climb to 49.

The services PMI increased to 53.3 in February from 48.7 in January, beating expectations of 49.2.

The manufacturing PMI climbed to 49.2 in February versus 47.5 expected and 47.0 in January.

The data signalled a resilience of the economy in the wake of headwinds which include rising interest rates, the ongoing cost of living crisis, labour shortages and strikes.

The pound climbed to 6-day highs of 1.2116 against the greenback and 1.1202 against the franc, off its prior lows of 1.1986 and 1.1101, respectively. The next possible resistance for the pound is seen around 1.27 against the greenback and 1.14 against the franc.

The pound touched 0.8795 against the euro, a level not seen since January 31. If the currency rises further, it may find resistance around the 0.86 level.

The pound was higher against the yen, at a fresh 2-month high of 163.01. The currency is likely to challenge resistance around the 165.00 level.

Looking ahead, Canada retail sales for December and CPI for January, as well as U.S. existing home sales the same month will be featured in the New York session.

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