Sterling up slightly vs Euro and Dollar
The latest PMI manufacturing index for the Euro-zone fell to an 8-month low while the services index slipped to a 6-month low. For the first time since 2014 inflation expectations hit 2%, increasing demand for a more hawkish approach from the European Central Bank.
Over in the US, PMI manufacturing index also fell to a 7-month low while
Fed Chair Powell suggested high inflation is likely to become less intense but not until well into 2022. His overall comments suggested the central bank is more concerned over inflation pressures.
Here in the UK, manufacturing output was hurt by supply shortages while the rate of new orders increased.
The latest Brexit discussions on Northern Ireland were reportedly constructive despite reports that the EU would remain firm with their demands. Despite the talks, key differences remain.
Looking at the rates this morning the pound is slightly up against both the euro and the dollar sitting around 1.1820 and 1.3780 respectively. The euro is also slightly up against the US currency hovering around 1.1650.