The Pound continued to remain resilient yesterday, rising for a fifth straight day against the Greenback. The economic calendar was relatively light yesterday; as the trend was untouched throughout the European session. The UK economy of late has shown healthy economic performance. The data has been better than markets initially thought after the shock Brexit vote. The Bank of England Governor, Mark Carney, will face a series of tough questions from lawmakers today as some say he was too quick to slash interest rates.
Across the pond, the US election is heating up. Controversial Republican nominee, Donald Trump, is 2 points ahead of Democrat, Hilary Clinton, according to a CNN/ORC poll released yesterday. This news injects uncertainty into the Greenback as it suggests the race for the White House is far from over. Also, the US released it’s ISM Non-Manufacturing PMI figure, which was its worst reading since February 2010 at 51.4, sparking a sharp sell off yesterday afternoon.
At 9:30am, the UK’s Monthly Manufacturing Production figure will be released, this is expected to register at -0.4%. If this target is not met, the Pound is likely to suffer, as Manufacturing makes up around 80% of total Industrial Production. Following this, Mark Carney and several MPC members will testify on inflation and the economic outlook at 2:15pm. The Governor of the BoE’s comments are likely to cause market volatility. At 3:00pm the Bank of Canada will also release an official overnight interest rate with a statement to follow.