Sterling has dropped as two of the three PMI’s have now been released from the UK, both posting worse than expected. The Manufacturing PMI posted a bearish 55.9 yesterday, missing the forecasted 56.3, as the cost of goods used for the production process rose to a six-month high. Despite the weak release, the manufacturing production industry has continued to expand for the fourteenth month running. Construction PMI, forecasted at 51.1, posted a poor 48.1, seeing the figure drop below the key 50 level for the first time in thirteen months, the fastest decline in output since July 2016. The survey respondents mentioned the drop in workloads was due to fragile confidence and a subdued risk appetite amongst their clients, with this being seen the most in the commercial building sector.
Across the pond, US President Donald Trump looks set to enter the final stages of choosing the next chair of the Federal Reserve after meeting with the candidates in the last few days and could possibility make a decision in the next couple of weeks. The favourite in the race is former Federal Reserve Governor, Kevin Warsh, however Trump hasn’t ruled out reappointing current chair Janet Yellen. The Greenback boosted on the prospect of Warsh being appointed, as Warsh is seem to be more hawkish than Yellen.
This afternoon, the UK Conservative party conference continues with the Leader of the Conservatives in the European Parliament, Secretary of State for International Development, Secretary of State for Defence and Foreign Secretary set to speak about promoting global Britain. Across the pond, FOMC member Jerome Powell will be speaking about regulatory reform at a financial regulation event in Washington. Whilst the Bank of Canada, Deputy Governor, Sylvain Leduc will be speaking about Canadian business creation and productivity at the Sherbooke Chamber of Commerce.