GBP resilience persists

By FXstreet.com | July 02, 2014 AAA

FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, remarks the ongoing GBP resilience.



Key Quotes



"UK June Manufacturing PMI data yesterday morning beat expectations coming in at an 8 month high of 57.5, showing yet again that the UK recovery continues to thunder on. GBPUSD predictably traded to new 2014 highs and after another lukewarm US data release, this time the US ISM manufacturing number coming in at consensus, GBPUSD managed to trade north of 1.7150."



"There has been plenty of opportunity for GBPUSD to retrace lower after it has hit new highs daily but it is not materialising. GBPUSD’s resilience may signify that investors have further appetite to chase the rate higher."



"This June PMI reading finishes Q2 data for manufacturing which showed a faster pace of manufacturing growth than Q1, providing positive signs for the official numbers when they are released and ultimately possibly stronger GDP growth and a greater chance of a late 2014 interest rate hike."



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