Market Perspective: EURGBP CROSS RATE

Fundamental: British Pound (GBPUSD)

The UK services sector continues its growth rate at a robust pace, with the UK October PMI Non-Manufacturing index at 62.5. the highest registered rate reading in 17 years. Likewise, the best quarterly performance showed within its 16 year period in the third (3rd) quarter of this year 2013. At this pace, expect overall wages in this UK sector and industry to move higher as job growth will strongly register and should also be able to meet the demands of production requirements.

• The UK PMI Services was the strongest figure in 17 years (Cable Positive).
• The market investors & major participants await ECB on Thursday Nov. 07, 2013
• Price Action Spill-over into EURGBP & GBPJPY cross rates

FundamentaL: Euro (EURUSD)

• Euro-Zone Manufacturing PMI (OCT.) likewise confirms expectations.
• EURUSD price action holds slightly to lower while pacing behind Cable prices.
• Thursday’s ECB meeting has kept investors & traders at bay.

The final revision of October’s Eurozone’s Manufacturing PMI final figure have finally confirmed its estimate for the month of October. The increased figure to 51.3 from 51.1 in September have not spilled over as much as the effects in prices in the Cable foreign exchange market. Whereas both reports are practically net positive for both European majors as a sign for growth and vote of confidence in the factory sectors remains good in the remaineder of the year.

Market Perspective: EURGBP CROSS RATE