by Dave Pewes
The UK pound has jumped +0.8% to exceed 1.33 versus the euro today, hitting an intra-day peak of 1.3318, as the UK's enormous services sector unexpectedly accelerated in January.
Sterling strengthens, as UK services rebound
UK services activity surged to 57.2 last month, according to economic statisticians Markit, faster than the most upbeat economic forecast, and more than compensating for December's decline to a 17-month low. According to Markit's index, any number above 50.0 points to economic growth, with the higher the better.
UK off to "reassuringly robust start" to 2015
This boosted sterling versus the euro, because, according to Markit economist Chris Williamson, the data points to "a reassuringly robust start to the year for the UK economy. The data will allay fears that the economy is slowing sharply, having merely seen growth cool during the winter to a more sustainable pace."
Services employment sub-index 2nd best in 19 years
In particular, sterling jumped, as the UK's services employment sub-index rocketed to 57.1 in January, the joint-second highest figure since date began to be compiled, 19 years ago. This bodes especially well for the UK's job market in 2015, and may point further gains both for Britain's economy, and the pound, in the months to come.
