Brexit means Brexit

Wednesday’s improved consumer confidence figures gave the Pound a much needed boost and this continued today although many strategists still remain cautious that these gains are only short term, as there is still much uncertainty surrounding the deal that will be made for Brexit. Theresa May met with her senior cabinet ministers for the first time since the summer break yesterday to begin discussions on their developments since the June vote. The Prime Minister and cabinet ministers and were most likely discussing the challenges they face with officially exiting the EU, and how they are going to interpret the vote to leave the EU and possibly decide when precisely will they look to invoke the Article 50. However, the Prime Minister has said she will not trigger Article 50 and start the exit procedure officially until next year.

EuroZone unemployment rates were released yesterday and remained unchanged at 10.1% in July. EuroZone inflation data was also released and has also remained fragile in August. Figures came in at 0.2%, unchanged from July’s figure and less than analysts’ forecasts of 0.3%. as the figure missed the mark could this elevate the prospect of further action from the ECB to stimulate further policy easing in the coming weeks.

Today starts the beginning of a new month and as always an array of Data across all three Majors is to be expected and as ever could bring some volatile weeks ahead . This morning brings EUR an UK Markit Manufacturing data, then RBC Manufacturing PMI at 14:30 and an afternoon focused on the US with Initial Jobless claims, unit labour costs, nonfarm productivity, Markit Manufacturing PMI, construction Spending. However the all important ISM Manufacturing PMI is due at 3pm which is expected to show 52.0 down from 52.6 previous, not a great sign as this shows a contraction and closing in on the danger zone that is 50. ISM Prices Paid is expected to remain unchanged. Investors will be keen to watch and it is a significant indicator of the overall economic condition in US.

As ever if you have an upcoming requirement then do get in touch with your Currency Index account manager to discuss your options to secure your currency needs.