by Damian -
Pound up against multiple currencies
Later this afternoon the only data out from the USA is a Markit Manufacturing PMI report for November. Last Thursday and Friday were both quiet days for the markets with Thanks Giving and Black Friday taking centre stage!
U.K. manufacturing growth unexpectedly accelerated in November to the fastest pace in four months as domestic demand strengthened. The report showed export orders fell for a third month, further highlighting Britains dependency on domestic demand. Data last week showed a jump in consumer spending drove the U.K. economy to a seventh straight quarter of growth in the three months through September.
The Pound pushed higher against the euro and US Dollar rate after initially falling over the weekend.
On a negative front for the pound U.K. mortgage approvals fell to the lowest in more than a year in October, adding to signs the property market is cooling. Britains housing market has lost momentum in recent months after the BOE introduced new curbs on risky lending and warned of the threat of a property bubble!
This morning in Europe German manufacturing unexpectedly shrank last month in a slump that dragged factories in the euro area to the brink of stagnation. The weakness in the 18-nation region, coupled with the lowest inflation in five years, is pushing the European Central Bank closer to expanding unconventional stimulus to revive price growth and the economy. President Mario Draghi will lead a meeting of policy makers on Dec. 4 after signalling that theyre working to get new tools, including full-scale quantitative easing, ready as soon as possible.