Forex Flash: Pound resilient yesterday despite UK closed for the day - Investec

FXstreet.com (Barcelona) - Investec Treasury analysts note that whilst the UK enjoyed an extra day off yesterday the US was open and the S&P equity index took the opportunity to climb to another all time record high at 1617.5.

They continue to note that despite London markets not being open for business the pound performed resiliently, largely as a result of a very encouraging Services PMI figure on Friday morning which completed a trilogy of better than expected UK surveys last week after construction and manufacturing also surpassed expectations. They write, “Ahead of the Bank of England interest rate decision this Thursday these figures should make the Monetary Policy’s discussion a little easier as it appears they will not announce an expansion of the asset purchase programme. Elsewhere, Australia cut interest rates overnight from 3% to 2.75% which has triggered a sell-off in the Aussie Dollar allowing GBP/AUD to climb above 1.52.”