The pound lost 0.4% against the dollar yesterday as UK business activity fell in August for the first time since January. Sterling rebounded from its lowest level since mid-June as the British composite Purchasing Managers’ Index (PMI) figures came in at 48.6, higher than the predicted 47.9.
By the end of the day sterling had lost 0.3% against the dollar and gained a similar amount against the euro. The pound’s weekly gains against the euro are close to 0.7%.
S&P Global released its August services PMIs for the EU and China which sparked new economic fears as weak data spooked investors.
Yesterday oil prices rose above $90 per barrel for the first time in 2023 as the world’s two largest oil producers boosted prices, despite most of the world struggling with higher energy costs.
As a result, motorists could be hit hard as traders in Russia and Saudi Arabia continue to cut a total of 1.3 million barrels from their daily output. In the UK, petrol is at its highest level this year with a pump price of 151.7p.
With the Wilko deal falling through last week, bargain retailer B&M has struck a deal to buy up to 51 stores, snapping up part of the 400-strong retail chain.
This morning, German factory orders plunged 11.7% month-on-month in July, considerably worse than market expectations of a 4% fall. This was the first drop in industrial orders since March and the steepest since April 2020.
On the data front, economists will receive the latest US services and composite PMI figures, while the US Federal Reserve is due to publish its Beige Book on economic conditions.
Central bank talks continue today across the US, euro area and UK.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
