The US joins the game again today with the ISM Non-Manufacturing figures. We do expect to see a small increase from 52.9 to 53.3and after the dollar hits its highest point against the pound since 1985, any positive key releases ill surly drive it further. Friday’s Non-farm payrolls in the US will be closely watched following on from last month’s weak release of 38k. 180k jobs are set to have been added in this months non-farms which once again is likely to drive the dollar.
Bank of England Governor Mark Carney made it clear that we have been impacted by the referendum result which was decided by the public. He said in his press conference yesterday that the UK ‘is entering a period of uncertainty and significant economic adjustment’ – the pound hit lows as the Asian market opened last night of GBPEUR 1.1585 and GBPUSD 1.2775
German Retail PMI declined this morning but the pound couldn’t find the strength it needed to rally.
Morning Market Rates