4th December 2017 Market Update
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?? GBP – The UK manufacturing sector hit a four-year high following strong demand domestically and from overseas, boosting order books, production and employment.
Focus today will fall on the construction sector, with service sector data due on Tuesday and manufacturing and industrial production figures out on Friday.
As well as the economic data, markets will be waiting for any further developments surrounding Brexit when Theresa May and Juncker meet today.
?? EUR – Eurozone manufacturing expanded at its fastest pace in 17 years, surpassing market expectations and causing the euro to finish stronger against the pound by the close of play on Friday.
Focus this week will fall on the service sector, retails sales and third quarter GDP figures.
?? USD – Whilst manufacturing PMIs beat expectations, ISM figures showed a dip in output. However, the dollar managed to claw back some of the losses it made throughout the course of last week.
Over the weekend the US Senate passed its tax reform bill, allowing the US dollar to continue its gains from Friday. The pound is now 0.85% lower against the US dollar following the highs seen on Thursday.
Service sector figures are due for release on Tuesday and ADP job report on Wednesday but the main focus will fall on the nonfarm payrolls report and unemployment figures on Friday. With the US dollar being on the back foot over the course of last week, impressive figures will be needed in order for the currency to continue to regain its losses from last week.
09.30am: PMI Construction – Expected to climb to 51
Summary: Despite UK manufacturing figures comfortably beating expectations, the pound fell against both the euro and US dollar. Eurozone and US manufacturing PMIs came in beyond expectations as well.
Strong data from the UK this week as well as positive developments with regards to Brexit will be needed in order to keep up the pound’s impressive performance from last week.
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