Sterling boosted by Manufacturing output
- AUD - Cash Rate: 1.50%
- GBP - Manufacturing PMI: 57.3
- NZD - Employment Change q/q: 1.2%
UK Manufacturing PMI posted a three-year high of 57.3 yesterday, with both the new orders and output subcomponents growing the fastest. Sterling was boosted on the back of this news, as it was expected to only register at a figure of 54. The UK Manufacturing PMI has been registering above 50 since September 2016, as there has been an increased demand from overseas due to the weaker Sterling. All focus will be on watching to see whether a trend develops following this release.
This morning sees the first reading of GPD for Q1 released from the Eurozone. As inflation now rests at the ECB’s target of 1.9% and economic data of late has shown improvements in the Euro area, the first quarter of 2017 is set to show a slight expansion to 0.5% from 0.4%.
- GBP - Construction PMI
- USD - ISM Non-Manufacturing PMI
- USD - Crude Oil Inventories
Other key data is released from the US today, with both ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change being posted. The FOMC will also release their statement. However, no press conference is thought to follow and a rate hike is not expected.
Back in the UK, the GBP Construction PMI is released today, expected at 52.1. With there being no increase in results over the past 3 months, the market will be watching to see if this continues.