- There were a raft of individual European member state Service PMI prints released yesterday morning, all of which were roughly in-line with expectations. They were soon followed by the overall Eurozone Services PMI print, which unsurprisingly then was also almost bang in-line with forecasts at 56.3 (56.2 Exp) as a result.
- UK Services PMI disappointed yesterday morning, with a print of 53.8 falling short of the expected 55.1. This was the lowest print in 3 months, but nonetheless comfortably indicates industry expansion (Above 50.0). Sterling was largely unmoved by this weak print as political issues continue to dominate the Pound’s movement.
- Those raft of UK Election polls we included in yesterday’s newsletter certainly appeared to give markets and investors a degree of confidence as the Pound was one of the best performers on the day, and enjoyed a rare positive day of late. Despite one or two of the polls narrowing, across the board they still appeared to point toward a Tory win, albeit a narrow one.
- GBP/USD rallied to a day’s high of 1.2940, whilst GBP/EUR hit 1.1501. worth noting however neither of these levels was sustained for very long before the Pound retreated.
- Other Data of Note:
- US ISM Non-Manufacturing PMI 56.9 (57.1 Exp)
- US Factory Orders m/m -0.2% (-0.2% Exp)
- US Revised NonFarm Productivity q/q 0.0% (-0.6% Exp)
- Overnight the Reserve Bank of Australia opted to keep interest rates on hold at 1.50% as expected. In their minutes the RBA suggested risks are finely balanced.
- UK BRC Retail Sales Monitor y/y -0.4% (-0.2% Exp). Worth noting previous reading was +5.6%.
- Japan Average Cash Earnings y/y 0.5% (0.3% Exp).
- Australia Current Account -3.1Bn (-0.2Bn Exp).
- UK ELECTIONS: Survation Poll: Tories 41.5% vs Labour 40.4%.
- Potentially quiet day ahead with little key data due for release.
- US JOLTS Job openings will probably garner the most attention at 3pm.
- No doubt there will be some twists and turns ahead however, particularly where Sterling is concerned with the current political backdrop.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.10||EUR||Eurozone Retail PMI||52.7|
|09.30||EUR||Sentix Investor Confidence||27.6||27.4|
|10.00||EUR||Eurozone Retail Sales m/m||0.2%||0.3%|
|15.00||USD||JOLTS Job Openings||5.65M||5.74M|
|TBC||NZD||GDT Price Index||3.2%|