bank of england

Sterling rally maintains momentum

1st December 2017 Market Update

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🇬🇧 GBP – Yesterday there was no data released from the UK of significance. Despite this, the pound maintained its strength against the euro and dollar. As a result, sterling reached its strongest levels since 25th September against the US Dollar. Today the only thing of note being released from the UK is manufacturing PMI, which is expected to increase to 56.6 and could help the pound maintain its momentum.

🇪🇺 EUR – Yesterday CPI from Europe came in below expectations at 1.5%, which led to the euro weakening off yesterday morning. German unemployment change came in positive but did nothing to help the struggling single currency. Today manufacturing figures are coming out from across Europe, and the final figure is released at 10am.

🇺🇸 USD – The dollar remains under pressure from both the euro and Sterling. Unemployment claims showed almost no change from last week’s figures, which meant the dollar remained on the back foot. Delays on Trump’s tax reforms contributed to US political uncertainty, which has further contributed to the dollar’s weakness. This afternoon ISM Manufacturing PMI is being released from the US. This is expected to be weaker, which could add to the dollar’s turmoil.

 

Key Announcements

🇬🇧 GBP
10:30am: Manufacturing PMI

🇺🇸 USD
16:00pm: Manufacturing PMI

 

Summary: Sterling remains in the driving seat, as it strengthened against both the euro and dollar yesterday. Today will be dominated by manufacturing figures which are released in Europe, the UK and the US. Depending on these pieces of data, the market will move accordingly. Any concrete developments concerning Brexit could also affect the pound.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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