Sterling enters the week down on the euro compared to last Monday but with fresh gains of around 0.68% against the US dollar within the same time span.
The S&P is scheduled to release one of the UK’s leading indicators of UK’s economic health, with the latest purchasing managers index (PMI) data at 9:30 today. PMI is generally an important release for market participants, as it provides the most up to date and relevant insight into how companies view the economy.
Today’s release is a final release for manufacturing PMI. Pound-watchers will be keen to see if the results trigger any volatility.
The Organization of the Petroleum Exporting Countries (OPEC+) announced a surprise cut to its oil production on Monday, boosting fears that central banks will need to hike interest rates further to combat inflationary pressures.
As a result, European equity markets were headed for a lower open.
Also this morning, the Japanese yen weakened against the US dollar, falling to its lowest levels in two weeks. This too followed the news of surprise production cuts from OPEC+ as it increased fears that the US Federal Reserve may need to continue raising interest rates to tame inflation.
Tokyo stocks climbed during Asian trading hours – the Nikkei 225 index gained around 0.58% .
On the data front, US economic data will dominate markets this week. There will be plenty releases for investors to digest, with a flurry of key data scheduled to hit markets on Wednesday.
Today at 3pm UK time the ISM manufacturing PMI will be released. The index edged higher to 47.7 in February and is expected to rise to 49 today. If it does, this is likely to please markets.
However, it is also worth noting that an index above 50.0 points to industry expansion, whereas anything below indicates contraction.
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