Strong UK Economy
On the back of the healthy retail figures out of the UK yesterday and the MPC minutes, GBP climbed to a new level against the Euro.
This is in comparison to German PMI data released this morning which has shown a decrease in manufacturing and a rise in PMI services. Both these figures came in against expectations. French PMIs have also come in below expectations. These figures further highlight the difference between the UK and European economies. We will get some GDP figures out of the UK today which should impact GBP further.
Big news out of China, as the PMI manufacturing data was shown to be at its strongest level since December. Hopes are high of a reverse in the economic slowdown and more signs of stabilisation, although more stimulus will be needed.
Down under, Australian and New Zealand Dollars strengthened due to increased risk appetite and a more positive outlook in the job market.
Minutes from the last Fed Meeting in the US were also released, showing inflation was expected to remain relatively stable.