The quiet start to the week set to be interrupted?
Monday proved a quiet day across foreign exchange markets with the GBPUSD rate trading within a half-a-cent range for most of the day. However, the calmness may not last for much longer with a number of global PMIs set for release across Tuesday.
The pound had an uneventful day yesterday despite this being a week which sees a Bank of England monetary policy announcement/inflation report as well as the fact we’re less than 2 months away from departing the European Union with no potential workable deal in sight. Yesterday saw UK construction PMI miss expectation by a significant amount. In the run up to the 29th March deadline it’s clear many firms have either delayed or put on hold projects until further clarity is offered. The pound traded in 0.5 cent ranges against both the euro and US dollar for the majority of yesterday’s session ($1.3050 – $1.31 & €1.1380 – €1.1420).
Today is set to be a little livelier with a number of European and US PMI reports set for release. It’s time to find out what the most important PMI reading has instore for the UK. Services PMI is due for release at 0930. The UK is a services dominated economy with almost an 80% of GDP contribution coming from this industry. Similar releases will also stem out of the eurozone as well as the US who will also offer a dose of manufacturing data too. Tonight also sees the State of the Union address from President Trump which also has the potential to move financial markets.
Written by Viv Savani. 8:31am, February 5th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.