November 1, 2017 / 9:47 AM / in a year

Sterling hits 4-1/2-month high vs euro on strong manufacturing data

LONDON, Nov 1 (Reuters) - Britain’s pound hit a 4-1/2-month high against the euro on Wednesday, after a survey showed UK factories reported stronger growth than expected last month as well as rising inflation pressures.

The manufacturing purchasing managers’ index (PMI) rose to 56.3 in October from an upwardly revised 56.0 in September. This was above its long-run average, bucking economists’ forecasts in a Reuters poll for a slight fall and cementing expectations that the Bank of England will raise interest rates on Thursday for the first time in a decade.

Sterling climbed 0.4 percent on the day to trade at 87.37 pence per euro, its strongest since June 19.

It also added a quarter of a percent on the day to hit a two-week high against the U.S. dollar of $1.3321.

Britain’s blue chip FTSE 100 hit a session low after the UK PMI data, but remained up 0.1 percent on the day. (Reporting by Jemima Kelly, Polina Ivanova and Kit Rees; Editing by John Geddie)

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