Forex News: Pound Higher After Strong U.K. PMI Data

Pound Higher After Strong U.K. PMI Data

(RTTNews) - The pound strengthened against its major counterparts in the New York session on Friday, as the nation's private sector activity expanded at the fastest pace in three months in January.

Flash survey results from S&P Global showed that the composite output index posted 50.9 in January, up slightly from 50.4 in the previous month. A reading above 50 indicates expansion. The expected score was 50.0.

The factory Purchasing Managers' Index rose to a 3-month high of 48.2 compared to 47.0 in December. Nonetheless, a reading below 50 indicates contraction, and the expected score was 46.9.

By contrast, the services PMI remained in the growth zone and rose to 51.2 from 51.1. The reading was above the forecast of 50.8.

Investors reacted positively to U.S. President Donald Trump's remarks at the World Economic Forum in Davos, Switzerland. Trump's remarks helped ease worries about tariffs a bit, and raised hopes of some monetary easing by the Fed.

The pound climbed to more than 2-week highs of 1.2490 against the greenback and 1.1290 against the franc. The next possible resistance for the currency is seen around 1.27 against the greenback and 1.15 against the franc.

The pound advanced to a 2-week high of 194.54 against the yen and a 1-week high of 0.8417 against the euro, from its early 2-day lows of 192.07 and 0.8462, respectively. The currency is seen finding resistance around 197.00 against the yen and 0.82 against the euro.

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