Yesterday was a bit of a storm in a teacup. With the huge raft of data out there was always the chance for heightened volatility. Around the Bank of England interest rate decision there was a bit of turbulence for the Pound, but it soon quietened down. The BoE raised their base rate to 4.25% as expected.
Overall the data came in in line with expectations yesterday hence the overall sideways movement. However the UK retail sales out earlier came in nicely ahead of predictions. Analysts had expected month on month growth of just 0.2%, but the actual number was growth of 1.2%. This has give the Pound a modest lift versus the Euro and the Dollar this morning.
Today there is a slew of manufacturing and production data from the Eurozone, UK and the US. These numbers are provided by the Chartered Institute of Purchasing & Supply and the Markit Economics and are referred to as the purchasing managers index or PMI for short. The numbers give an indication of the health of these economies based on spending.
There's also durable goods orders from the States, retails sales from Canada and a speech by a Bank of England member.
Business news centres on the BoE interest rate decision yesterday. Although the rate is at an 18 year high the BoE is relatively optimistic over the UK's economy. The warning to businesses from the BoE was to stop raising prices to try and alleviate inflation and therefore curtail the need for more interest rate hikes.
Today’s Economic Calendar
EUR: 09:00 S&P Manufacturing and Service PMI
UK: 09:30 S&P Manufacturing and Service PMI
US: 12:30 Durable Goods Orders
CAN: 12:30 Retail Sales
US: 13:45 S&P Manufacturing and Service PMI
UK: 16:00 BoE's Catherine Mann Speech
As ever we look forward to keeping you in the loop and look out for our next update.
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