So far this morning, yesterdays losses against EUR and USD have been slightly pared back, but the last fortnight’s fall has returned GBP/USD below its average for the past year.
Yesterday’s flash reading for Markit PMI in January came in slightly under expectations at 53.4 for Composite, 56.9 for manufacturing and 53.3 for services, while Germany thrashed expectations, helping to push GBP/EUR down to a three-week low.
This morning we’ve heard that public sector borrowing was below expectations in December. At midday we’ll hear about CBI industrial trends and business optimism.
It is, on the whole, a quiet week for economic data, one in which politics and international affairs are perhaps more likely to affect the markets.
