Forex News: Pound Rises As U.K. Private Sector Growth Hits

Pound Rises As U.K. Private Sector Growth Hits 6-Month High

(RTTNews) - The British pound strengthened against other major currencies in the European session on Monday, after the U.K. private sector growth strengthened to a six-month high in March, driven by the fastest upturn in the services economy since 2024.

Data from S&P Global showed that the flash composite output index registered 52.0 in March, up from 50.5 in February.

The index has remained above the crucial 50.0 mark for the seventeenth month in a row. Moreover, the score signaled the fastest growth since September 2024.

The robust growth in the service sector helped to offset the sharpest decline in manufacturing production since October 2023.

The services Purchasing Managers' Index hit a seven-month high of 53.2 compared to 51.0 in February. The score was well above forecast of 51.2.

At 44.6, the manufacturing PMI remained at an 18-month low and down from 46.9 in February. The score was forecast to rise to 47.3.

Investors also awaited greater clarity on U.S. tariffs after U.S. President Donald Trump said there will be "flexibility" on his reciprocal tariff plan and that he would discuss tariffs with Chinese President Xi Jinping.

In the European trading today, the pound rose to 4-day highs of 0.8360 against the euro and 1.2975 against the U.S. dollar, from early lows of 0.8385 and 1.2911, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.82 against the euro and 1.31 against the greenback.

Against the yen, the pound advanced to a 5-day high of 194.02 from an early low of 193.27. The pound may test resistance around the 196.00 region.

The pound edged up to 1.1433 against the Swiss franc, from an early low of l.1408. On the upside, 1.15 is seen as the next resistance level for the pound.

Looking ahead, Canada manufacturing sales data for February, U.S. Chicago Fed National Activity index for February and U.S. S&P Global PMI reports for March are set to be published in the New York session.

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