There has been little positive news on the global economic growth front in recent months but economic activity in the important service sector did pick up in February in the US, UK and Eurozone according to PMI data out today. The index surged three percentage points to 59.7 in the US and rose to 51.3 and 52.8 respectively in the UK and Eurozone – both 4-month highs.
However, the Dollar has seemingly been the main beneficiary and is up for the six consecutive trading session (albeit still in a narrow range). Sterling is in limbo ahead of critical parliamentary votes next week but the Euro has weakened to its weakest level since end-May in trade weighted terms and is down to 1.13 versus the Dollar.
