US markets reopen as GBP loses ground again
Yesterday was a bit of a bittersweet day for the Pound, as we saw worse than expected manufacturing PMI but UK money supply and lending data were slightly stronger than expected.
Strength of the US Dollar
Sterling has lost ground again, especially against the strength of the US Dollar, but there is still an underlying sentiment that the currency is quite positive, however well hidden that may be at the moment. August was a poor month for Sterling, as we saw it subjected to a great deal of profit taking, mixed data and uncertainty over rate hikes.
In Australia, rates were predictably kept on hold at 2.5%. The best way to describe feelings towards the current state of the Australian economy is “cautiously optimistic” as moderate growth is occurring, consumer confidence is relatively stable and investment outside mining is improving.
US Markets Reopen
The US markets reopen today after a long weekend to see the Dollar still strengthening and looking forward to Friday’s non-farm payrolls data.
In Japan, the Yen is weakening and came with 0.6% of a five year low against the Dollar amidst speculation that Prime Minister Abe will shortly appoint an ally to reform the Government Pension Investment Fund.
Main events today are construction PMI from the UK, PPI from the Eurozone and a raft of data from the US including manufacturing PMI, construction spending and ISM.