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Pound takes wooden spoon again, but Carney will steer the good ship Brexit

Pound takes wooden spoon again, but Carney will steer the good ship Brexit

October saw Sterling take the wooden spoon again as the worst performing currency in the world and, having consistently fallen across the board since April, is a shoo-in for the annual title too.

The Pound found some respite after Bank of England (BoE) Governor Carney stated yesterday that he will step down in June 2019 after helping to secure an “orderly transition to the UK’s new relationship with Europe”.

The latest UK consumer lending data was unchanged from the previous month at £4.7bn which continued to suggest firm retail spending and reinforced expectations that there would not be any further interest rate cut in the near future. UK’s manufacturing PMI figures for the month of October are out today and are expected to show a mild decline to 54.5 from September’s 55.4.

Eurozone CPI inflation data was in line with consensus forecasts as the headline inflation rate edged higher to 0.5% from 0.4% while the core rate was unchanged at 0.8%. The data will maintain concerns over a lack of upward pressure on underlying inflation and European Central Bank (ECB) comments will remain under close scrutiny ahead of next month’s crucial policy meeting. Third quarter GDP levels remained the same at 1.6% and German retail sales data fell short of consensus, however, as September’s figures came in at -1.4%, down from last month’s figure of -0.3%.

The US Dollar bounced back from the bearish effect of the FBI taking a closer look at Hillary Clinton’s emails. The US Dollar gained ground amid rising expectations of a Fed rate hike next month. Personal Income month-on-month (MoM) came out 0.1% higher than its previous score, but failed to reach consensus. On the Core Personal Consumption Expenditure reading, the MoM figure printed in line with expectations at 0.1%.

Data to watch: 9.30am UK Markit Manufacturing PMI (Oct). 1.45pm US Markit Manufacturing PMI (Oct). 2pm US ISM Manufacturing PMI (Oct), Construction Spending (Sep).

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