Pound / US dollar exchange rate surges higher as UK Manufacturing PMI expands at fastest rate since March 2012

The pound euro exchange rate has also been boosted; GBP/EUR is now at 1.1730.

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Driving interest in the UK currency at present is further evidence that the UK economy is on the road to sustained growth; thus the need for further quantitative easing at the Bank of England diminishes.

This morning foreign currency buyers bid up sterling on news that last month's UK Manufacturing PMI came in at 51.3; consensus was for a figure of 50.1 - a convincing outcome.

"UK manufacturing expanding at fastest rate since March 2012 - Cable eyeing 1.53" say WorldFirst in response to today's manufacturing data release.

Forex.com give the following guidance for GBP/USD: "GBPUSD: gets above key resistance at 1.5260. 1.5280 then 1.5310-25 next short term resistance levels of note."

Trading Central say they are forecasting further gains in GBP/USD; "long positions above 1.515 with targets at 1.526 & 1.528 in extension. The pair remains on the upside and is challenging its previous high."

Also this morning, we are looking towards the eurozone where the beleaguered Spanish and Italian economies release their manufacturing PMI figures.

Analysts believe this is not likely to provide too much in terms of market focus given the fact that the latest figures are so far below the 50 mark.

Ahead for the pound dollar exchange rate is the US PMI release.

"Later in the day, the US ISM manufacturing PMI figure is expected to fall marginally from 50.7 to 50.6, which would represent the third consecutive fall in this key indicator. Again, this is one of those events that really has the potential to move markets. However this will only occur should we see a significant shift away from the forecasted amount," says Joshua Mahony at Alpari.