Flash: Sterling enjoys optimism –TD Securities

FXstreet.com (London) - Richard Kelly, Head of European Rates and FX Research at TD Securities noted that the UK Services PMI for October blew through even the most optimistic forecasts once again, rising from 60.3 to 62.5 and avoiding the small decline that the market was looking for.

Key Quotes:

“This leaves the headline series just one point shy of the all-time high in April 1997, and the details continue to suggest further upward momentum”.

“New business rose three points to its highest level on record, expectations are for further improvement over the next year, employment growth improved, and on the back of this momentum, there was upward pressure seen on wages and prices”.

“While the manufacturing survey showed a small decline, if this increase is sustained into next month and carried into the hard data, it would point to significant upside to Q4 GDP expectations of over 1% Q/Q”.