Cocoa futures tracked the English pound's gains against the U.S. dollar on Monday, propelled higher by as much as 2 percent after the release of strong economic data, according to Bloomberg.
The pound advanced against the world's reserve currency for a fifth consecutive trade session after the U.K. released stronger-than-forecast manufacturing data from last month, augmenting the belief that the region's economy is on the mend, picking up momentum and growing stronger.
"After a strong opening in New York, currency-inspired with the dollar losing further ground against sterling, the start of the new month has seen a continued speculative-led buying surge taking prices back up to levels not seen in two years," states a Monday email authored by director of cocoa brokerage Justin Grandison with ABN Amro Clearing Bank N.V., according to Bloomberg.
At 10:05 a.m. on Monday, cocoa futures rose 1.33 percent, a $37 lift to $2,825 per metric ton.
Reuters reports demand for cocoa and the products that the sweetener is a component of surge in Europe and North America in time for the Christmas, Valentine's Day and Easter holidays.
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