Poor UK PMI sees GBP slip slightly in a quiet day for data

Yesterday was another quiet day in the way of data particularly for the UK. The morning kicked off with the only release of the day for the UK, showing a small contraction in PMI construction to a reading of 52.2 from a predicted 52.4 and a previous 52.5. This was shortly followed by Eurozone retail sales data which showed significant improvements – up to 0.7% from a previous 0.1% for the month and 1.8% from a previous 1.5% on the year. As a result, and perhaps aided by the market correcting from its near 4 cent increase last week- GBP>EUR rates dropped slightly and by the close of business was around 20 pips down from open.

In the afternoon, as always market focus shifted across the Atlantic to the US who dominated the releases with Redbook index data and factory order ecostats. And all came in pretty much as was expected, and consequently whilst it was an up and down afternoon for the greenback, it closed against the pound and Euro almost exactly where the market opened. Some readers may like to take note that EUR/USD rates are only around 1% away from the best they have been in nearly 14 years at present.

Despite the quiet start to the week, today is a particularly busy day in the way of data releases so don’t be surprised if we see more movement in the rates. In the morning, we have the ECB non-monetary policy committee meeting and the Bank of Japan Governor Kurodas speech so those of you who buy or sell Japanese Yen may like to stay in close touch with your broker. Both Eurozone and German PMI & Markit services data follow these reports, and given the shock poor inflation result from Germany seen last week will there be another surprise figure today?

The US leads the afternoon data as they release PMI and Markit services of their own, but also the FOMC minutes, which certainly can move rates, and quickly.

So should you have any upcoming requirements give your Currency Index Broker a call today for some friendly and professional guidance on how to get the most out of your transfer when sending your money overseas. Currency Index can help you stay well informed and well ahead of the market.