Bloomberg News

Pound Rises Versus Dollar Before Purchasing Managers Indexes

June 01, 2011

June 1 (Bloomberg) -- The pound rose against the dollar, snapping a two-day decline, before a report that analysts said may show U.K. manufacturing expanded for a 20th month in May.

Government bonds declined before the U.K. manufacturing Purchasing Managers Index, based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply, which economists said may slip to 54.1 for May from 54.6 in April. A measure above 50 indicates expansion. The Bank of England may say U.K. mortgage approvals increased in April, according to a separate survey before the report today.

“There is a degree of nervousness going into the PMIs,” said Daragh Maher, deputy head of global foreign exchange strategy at Credit Agricole CIB in London.

The pound rose 0.2 percent to $1.6487 as of 9:21 a.m. in London. It was little changed at 87.51 pence per euro.

The yield on the 10-year gilt rose one basis point to 3.31 percent. Surveys for the construction and services industries will be released tomorrow and the following day.

Sterling strengthened 1.3 percent against the euro last month, while sliding 1.6 percent versus the dollar.

--Editors: Matthew Brown, Keith Campbell

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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