Pound rallies on UK Manufacturing Data

Yesterday we saw a surprise jump in UK’s manufacturing data in April to 2.3% from a paltry 0.1% in March.

Yesterday we saw a surprise jump in UK's manufacturing data in April to 2.3% from a paltry 0.1% in March.

The positive number in an area that has struggled, led to a move higher for the Pound. In addition, the NIESR GDP estimate also came out stronger, which suggests that UK growth could be stronger than thought.

The Pound will continue to be driven by the perceived outcome of the referendum in the short term, and tonight we have a two hour ITV debate (8-10pm) involving politicians from both camps.

Initial jobless claims to come

Today ECB President Mario Draghi will be speaking, and the market will be looking for any new signals or comments following last week’s meeting. In addition, we have US data with initial jobless claims later on. This data is normally benign, but given the weak non-farm payroll number on Friday it will be eyed closely. If jobless claims are rising, it could suggest that labour market growth is turning sour.

Royal Bank New Zealand rates unchanged

Overnight the Reserve Bank of New Zealand (RBNZ) left rates unchanged at 2.25%. There was some expectation that a 25 basis points cut could be on the cards. It is still likely that we will see a rate cut in the near future as the RBNZ maintain an easing bias. The NZD has strengthened on the avoidance of a rate cut.

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