Alert: British pound sterling powers higher on back of eye-opening (as in good!) UK Services PMI - UK economy has "all cylinders now firing"

 UK May PMI services came in at 54.9 versus expectations of 53.1.

A massive beat for the UK economy and GBP has responded accordingly:

The pound euro exchange rate is 0.36 pct higher at 1.1750.
The pound US dollar exchange rate is 0.3 pct higher at 1.5357.
The pound Australian dollar exchange rate is a percent higher at 1.6039.
The pound South African Rand is 0.6 pct higher at 15.1497.

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.

Quick reactions to news that the UK services sector has grown in strong fashion:

Alastair Heath, editor at City AM says:

"The economy is growing in all areas. Definite return to growth."

Chris Williamson, chief economist at survey-compiler Markit, says the UK economy is now firing on all cylinders:

"The UK economy has moved up a gear with all cylinders now firing.

"The data suggest that economic growth will have picked up in the second quarter compared to the 0.3pc increase in GDP seen in the first quarter, shaping up to reach 0.5pc if June sees sustained growth.

"There's good reason to believe growth can accelerate further. Across all three sectors, new business showed the largest jump for three years in May. Firms are also taking on staff in increased numbers, responding to the brightening outlook."