The pound has been gaining ground. Last week, Sterling strengthened against both the US dollar and the euro, moving above key levels that investors have been watching closely. Behind the move is a mix of factors, including softer US data, rising expectations for rate cuts from the Federal Reserve, and signs that the UK economy may be holding up better than expected.
The latest revision to the UK Services PMI, now at 51.2, up from 50.5, shows that activity in the service sector is expanding.
Meanwhile, US data last week came in on the soft side. The ADP employment report was weaker than expected, and a sharp rise in planned corporate job cuts suggests that labour market momentum is fading. This has increased confidence in markets that the Fed is ready to pivot. Investors now broadly expect a 25 basis point cut in the near term, which has pushed the dollar lower and lifted risk appetite globally.
In the eurozone, the picture is improving modestly. German factory orders, French industrial output, and Spanish production all came in stronger than expected. The region also posted GDP growth for the third quarter, alongside a slight rise in employment.
Finseta Plc (LON:FIN), formerly Cornerstone FS PLC, is a United Kingdom-based foreignexchange and payments company offering multi-currency accounts and payment solutions to businesses and individuals through its global payments network.
