Prior to the end of this week’s trading, the market was inundated with important data from Europe featuring a stronger recovery in the manufacturing and services sectors.
Business activity in the European Zone expanded further in April with a growth of 50.3 compared to 49.6 recorded previously. Readings above 50 indicate an increase in economic activity.
This reading shows the first expansion in the sector since last August, albeit only growing at a moderate pace.
Meanwhile, the manufacturing sector rose to its latest high since June 1997 at 63.3 in April, from 62.5 previously. The increase was driven by a surge in new orders and production in manufacturing.
This stronger surge has pushed the euro to rise higher in the European session.
In addition, the market also saw the publication of manufacturing and services data from the UK also showed stronger -than -expected readings.
UK business activity continued to show a recovery in April, recording faster growth in the last 6 and a half years. This latest reading shows the most significant expansion ever recorded in the sector.
The manufacturing sector also rose during the month, showing the strongest growth ever recorded since July 1994 after being supported by increases in production, new orders and employment.
The pound traded steady around 1.38700, supported by strong retail sales readings.
