Sterling has rebounded following the chancellor’s climbdown on tax and promise to bring forward publication of the medium term fiscal plan. It climbed against most major rivals, with gains in excess of 1% against the euro and almost 2% against the US dollar.
Yesterday’s final PMI reading manufacturing in September was as expected, marginally negative with 48.4. We also heard from Catherine Mann, a member of the Bank of England’s monetary policy committee. With the MPC split three ways at the 22nd September vote, analysts will be interested to hear that her vote for a more hawkish 0.75% rate increase was based on her worries over sterling’s weakness and the inflationary boost to household incomes from the government’s energy price cap.
Tomorrow’s data releases include services and composite PMI, and new car sales.
GBP/EUR past year
