British pound jumps higher versus US dollar, euro, Australian dollar and Rand - but upside is predicted to be limited

 A look at the latest pound sterling rates (Currency:GBP) shows:

The pound / euro exchange rate is 0.43 pct up on Tuesday night's closing rate at 1.1759.
The pound  / US dollar exchange rate is 0.35 pct up at 1.5366.
The pound / Australian dollar exchange rate is 1.12 pct higher at 1.6046.
The pound / South African Rand exchange rate is 1.2 pct higher at 15.2369.

NB: The above are wholesale market quotes - your bank will affix its own discretionary spread. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering you more currency. Please find out more here.

Sterling makes broad-based gains on forex markets

Sterling made broad gains against its major counterparts Wednesday morning following the release of better than expected UK service sector data for last month.

"The PMI services report completed the trifecta of upward surprises this week. UK PMI services rose to 54.9 versus 53.0 - its best showing in more than a year," says Boris Schlossberg at BK Asset Management.

The good data has already prompted some pro-sterling commentary by analysts - RBS analyst Ross Walker says that because the signs are firmly pointing to an improving UK economy the incoming Governor at the Bank of England will find it harder to implement sterling-negative expansionary money policies.

However - there are still some in the currency markets who warn about an over-exuberance towards the British pound just yet.

Sterling upside to remain limited

Andy Scott, premier account manager at foreign currency exchange brokers HiFX says the incoming governor is simply too much of an unknown for currency markets:

"The UK economy seems to be holding its own despite the terrible shape of the eurozone, its largest trading partner and Sterling should benefit against the single currency as a result. However, there still remains the risk that under its new Governor next month, the Bank of England decide to try and turbo charge the meagre economic growth being seen at the moment with more monetary easing.

"This unknown will continue to limit sterling’s upside due the risk of sterling dropping due to such central bank action. There’s even been some calls recently that Mr Carney could look to significantly weaken sterling in an effort to boost exports but we feel this to be unlikely."