Brexit talk continues to hinder the Pound’s performance as Bank’s in the UK threatened to relocate before the year end. Bankers are worried about losing access to the single market, according to the head of the BBA (British Bankers Association). Their exit would leave a big hole in the UK’s tax base and no doubt weaken the Pound. The Sterling struggled to hold last week’s gains as the Pound remains extremely fragile around any talk regarding Brexit negotiations.
Yesterday’s docket was dominated by the Eurozone as we gained a raft of high tier data released from the single currency union. Manufacturing and Services PMI both posted better than expected readings. Services registered a 53.5, whilst manufacturing posted a 53.3. Manufacturing PMI’s reading was the best since January 2014. We also had several of Fed speakers in the afternoon including Bullard and the hawkish Dudley.
Tuesday starts with a piece of high tier data from Eurozone’s powerhouse; Germany. German Ifo Business Climate rates the level of current business conditions according to surveyed companies including manufactures, builders, wholesalers and retailers. In the afternoon, the US post their consumer confidence reading. Finally, late in the European session we have BoE Gov Mark Carney and ECB President Mario Draghi speaking in London and Berlin respectively.