The Bank of England kept monetary policy on hold yesterday, although governor Carney was slightly more hawkish than expected.
There were some positive Brexit headlines in the press regarding an agreement on financial services, but these remain unsubstantiated. Brexit minister Raab has said he remains confident of an agreement this month.
UK data continued to weaken this week, while US data has remained relatively strong.
In Europe, inflation edged higher despite economic growth continuing to slow.
On the exchanges, sterling volatility remains high, and extremely reactive to Brexit headlines.
Today’s focus is on the US payrolls data due at 12.30pm.
GBP/USD weakened to 1.2700 earlier this week, its lowest level since August, before rallying back above 1.3000 this morning.
GBP/EUR briefly dropped to 1.1200 where it met some strong buying interest as expected. However, we are likely to see continued selling interest above 1.1400.
|5/11/18||UK Markit/CIPS Services PMI||53.9||53.4|
|9/11/18||UK Industrial Prod. YoY||1.3%||0.3%|
|9/11/18||UK Manufacturing Prod. YoY||1.3%||0.1%|
|9/11/18||UK GDP YoY||1.2%||1.4%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2805||-16.77%|
UK Benchmark Rates
|3 month||0.80869%||2 year||1.18%|
|6 month||0.91225%||3 year||1.28%|
|12 month||1.07000%||5 year||1.43%|
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