Pound Weakened and Purchasing Manager’s Index
Well, Black Friday has been and gone…While it was a great boost to the economy, I have to say it’s a little confusing to see fist fighting over electrical goods literally the day after gathering family to reflect on how grateful you are for what you already have, but there we are.
This week is, of course, the PMI indices, starting out with GBP, Eurozone and USD Manufacturing PMI. For our part a growth figure is expected, albeit at a slightly slower rate and this is the same for the EUR PMI, so if these figures move in tandem the effect on the GBP/EUR rate could be muted.
Looking at the movements from last week in the Pound against USD and EUR, we have taken some significant losses in strength toward the very end of the week and in later trading periods on Friday too, meaning that we head into the week with exporters in the driving seat. Given the two cent peaks and troughs we have seen for the last fortnight, certainly using our free rate alert or market order tool to pick up on rates as they happen (and without having to watch all the time) could be a sound strategy if you have invoices to settle this week.
As I’ve written this we have seen the EUR PMI figure arrive at worse than expected at 50.1 (which represents a very slight growth) so an interim push for the GBP/EUR. Let’s see how we do this morning.