London - The pound rose for the first time in three days against the dollar as UK services grew faster than economists expected in March.
Sterling also strengthened for the first time this week versus the euro after data showed that IHS Markit’s Purchasing Managers Index for services rose to 55 from 53.3 in February.
That’s above the key 50 level that divides expansion from contraction and compares with median forecast of 53.4 predicted by analysts in a Bloomberg survey.
Sterling posted its first quarterly gain versus the US currency since mid-2015 in the first three months of this year, supported not just by the faltering dollar, but also as economic data in the UK were more resilient than initially expected after Britain’s vote last year to leave the European Union.
However, doubts are emerging on whether the economy can withstand the political uncertainty the Brexit negotiations will bring. The services PMI follows Markit surveys this week that showed both manufacturing and construction growth cooled in March.
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