The British pound is outperforming the Euro for the fourth trading day thanks to stronger than expected UK manufacturing activity.
The market was looking for a decline, but the strongest level of output growth in close to 13 years drove the index to a 3 year high of 56.3. Although the overall report is hawkish, the drop in both output and input prices will keep the Bank of England on hold this week. The lack of significant inflation pressures should buy the central bank time, allowing them to continue monitoring financial and credit market conditions before deciding whether to press forward with another rate hike.
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