Qatar respond to Saudi’s demands

Yesterday’s markets

4th July 2017

  • GBP - Manufacturing PMI: 54.3
  • GBP - MPC Member Haldane Speaks
  • AUD - Retail Sales m/m: 0.6%

It was PMI day yesterday, as we gained a host of manufacturing numbers released. Firstly, UK manufacturing posted a worst than expected figure as the uncertainty of Brexit negotiations has made it difficult for business to determine their future planning in the UK. Across the pond, the US had better results, with the ISM manufacturing PMI posting its highest level since December 2014. The dollar continued to strengthen against the Pound after this release.

The US will be in observance of Independence Day today, thus expect low liquidity in the markets and therefore a higher potential of volatile price action. In the UK, the second of the three PMI figures will be released. Construction PMI is expected to post 55.2, however this is unlikely to put a dent in the markets.

Today’s markets

3rd July 2017

  • AUD - RBA Rate Statement
  • GBP - Construction PMI
  • EUR - Spanish Unemployment Change: - 98.3k

Qatar is set to deliver its official response to the Saudi-led coalition of Gulf states which have written up 13 demands for Qatar to agree to. The states involved have completely cut diplomatic and transport links with the country. The latest from the Qatari Foreign Minister is that Qatar are ready to face the consequences of not acceding to the demands. Qatar now have 48 hours to accept the list of demands, or face further sanctions.