GBP Drops To 15-Month Low Against Euro On Manufacturing PMI

London, United Kingdom (PressExposure) July 01, 2011 -- Spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the financial activity shaping the markets on 1st July 2011.

There has been victory for the euro during trading in this morning's session (July 1st) following the publication of the latest UK manufacturing Purchasing Managers' Index (PMI).

According to Reuters, sterling (GBP) dropped to its lowest level against the single currency for 15 months.

It also achieved the 15-month record against a basket of currencies, pushing its trade-weighted index down to 77.5, a new Bank of England report revealed.

The international news agency said GBP dropped by 0.4 per cent to allow the euro to increase its standing to 90.80 p, its best performance since the middle of March 2010.

This also meant the single currency surpassed yesterday's high of 90.70 p.

Reuters pointed to the latest Markit and Chartered Institute of Purchasing & Supply UK Manufacturing PMI as one reason why traders may be nervous that the record base rate of 0.5 per cent will stay in place for some time to come.

Following a revised post of 52 in May, the PMI recorded last month was 51.3, which is the lowest level since September 2009.

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Press Release Submitted On: July 01, 2011 at 6:33 am
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