Improved figure for UK PMI sets the market tone

3 December, 2013

Graham Harborne

As you can see from recent reports the pound is very much on the war path at the moment. Yesterday saw an improved figure for UK PMI manufacturing which yet again saw the pound push through key support levels. It was however unable to stay at these levels and throughout the day it gradually weakened against both the Euro and Dollar. The USD was the main winner of the day with a few positive data releases and a fairly hawkish speech by fed chairman Ben Bernanke helping it claw back some of the losses it has made in recent weeks. UK construction PMI is due out this morning and we have Eurozone inflation data out also. I would anticipate that unless there are any major jumps in the readings we will see rates remain fairly stable today as we build up to Thursday which will have a host of important releases. Most importantly will be George Osborne’s Autumn statement. With all of the positive news over the last couple of months we could well expect a positive statement but it will be interesting to see if the Chancellor remains cautious and if he does we could see a dip in the pounds recent strength. As always the team here at Currency Index are on hand to assist you with all your currency requirements.