The pound is rocketing

Sterling is soaring higher on Thursday morning after the latest PMI data from the British manufacturing sector surprised to the upside.

The data, the second set released since the Brexit vote, came in at a reading of 53.3, against an expectation of 49, and a previous reading of 48.3 in July.

As a result of the positive shock, sterling took off. Prior to the release it was broadly flat against the dollar on the day, but immediately afterwards jumped around 0.85% against the greenback to trade above $1.3251.

Here's how sterling looks at 9:50 a.m. BST (4:50 a.m. ET), 20 minutes after the release:

Investing.com

Despite Thursday's rise, more weakness from sterling is expected, with HSBC arguing last month that sterling will fall to $1.10, and reach parity with the euro by the end of 2017. Other predictions about the pound's medium term outlook range from $1.20 at Goldman Sachs and $1.15 from Deutsche Bank, all the way to $1, a prediction made by former PIMCO executive Mohammed El-Erian.