Sterling gains after strong UK services PMI data

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LONDON, March 3 | Wed Mar 3, 2010 9:38am GMT

LONDON, March 3 (Reuters) - Sterling rose against the dollar and the euro on Wednesday after a survey showed UK services sector activity at a three-year high in February.

The four point jump in the CIPS/Markit services PMI index -- to 58.4 from 54.5 -- more than reversed January's fall and took the index to its highest level since January 2007. [ID:nLAG006155]

None of the 30 economists polled by Reuters had forecast such a sharp improvement. The consensus forecast had been for a reading of 54.9.

Sterling rose more than half a cent to around $1.5062 against the dollar GBP=D4 from $1.5007 just before the data, taking it just short of the day's high of $1.5077.

The euro fell to around 90.58 pence EURGBP=D4, a fall of 0.3 percent on the day, from 90.93 beforehand.

Britain's FTSE 100 .FTSE was little changed after the data, down 0.2 percent at 5,473.44.

(Reporting by London Markets team)

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