5th June 2018 Market Update
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?? GBP – UK construction PMI was favourable yesterday after beating estimates This had been expected to dip and in combination with the good manufacturing results last week, it could mean that Q2 GDP figures will be improved. The aforementioned drop off for the pound came following the BoE’s Silvanna Tenreyo who is an external member of their monetary policy, suggested the UK could afford to not raise rates last month, as it will soon have a clearer picture of underlying strength of domestic demand.
Today services PMI were released and improved favourably for the pound. BoE member Jon Cunliffe spoke later this morning too.
?? EUR – A quiet day for news from Europe yesterday: PPI for April disappointed but did not hinder the euro.
Services sector PMI results were lower than the previous reading and retail sales figures were drastically lower than anticipated. Which has weakened the euro.
?? USD – Yesterday only saw factory orders being released from the US which fell into negative territory and below expectations. The market clearly didn’t dwell on this fact however, as the US dollar gained further around this period.
Today sees services and non-manufacturing PMI’s released with small improvement expected for both. Job opening are expected to dip slightly but this is not surprising given the strong labour market in the US at the moment.
?? GBP 09:30am: UK Services PMI.
??EUR 09.00am: Services PMI.
??EUR 10:00am: EUR Retail Sales.
??USD 14:45pm: US Services PMI.
Summary: With a lack of data yesterday, the currency market was very quiet. The pound did lose a little ground. We have however seen a small resurgence this morning.
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