8 Apr 2015
Robust UK economic growth remains supportive for pound – BTMU
FXStreet (Barcelona) - With UK data posting a positive picture for the economy, the outperformance in the economic indicators might limit the downside for GBP, explains Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ.
Key Quotes
“The pound is continuing to derive support from the cyclical momentum of the UK economy. The release yesterday of the latest UK services PMI survey supported our expectation that economic growth in the UK will continue to remain strong this year."
"The services PMI increased by 2.2 point to 58.9 in March rising back towards levels sustained throughout most of last year. Markit stated that it was consistent with real GDP expanding by 0.7% in Q1.”
“The combination of solid employment growth, strengthening earnings growth and low inflation is proving a boost to consumer spending and will sustain strong growth this year.”
“The relative outperformance of the UK economy should continue even as political risk increases in the coming month providing support for the pound and helping to limit downside risk.”
Key Quotes
“The pound is continuing to derive support from the cyclical momentum of the UK economy. The release yesterday of the latest UK services PMI survey supported our expectation that economic growth in the UK will continue to remain strong this year."
"The services PMI increased by 2.2 point to 58.9 in March rising back towards levels sustained throughout most of last year. Markit stated that it was consistent with real GDP expanding by 0.7% in Q1.”
“The combination of solid employment growth, strengthening earnings growth and low inflation is proving a boost to consumer spending and will sustain strong growth this year.”
“The relative outperformance of the UK economy should continue even as political risk increases in the coming month providing support for the pound and helping to limit downside risk.”