The pound continued its strength against the euro yesterday following a series of positive data releases, which have decreased the chance of an interest rate cut next week. Sterling also remains stable against the dollar.
Attention turns to UK Purchasing Managers Index (PMI) data, which is due to be released this morning for Manufacturing, Composite and Services. If these figures beat forecasts, then we could see sterling react. Similarly, it could also move if they are disappointing.
All are expected to show a slight increase, with Composite PMI expected to move out of contraction territory, from 49.3 to 50.6. Composite PMI is a weighted average of the Manufacturing Output Index and the Services Business Activity Index.
In Brexit news, the withdrawal deal has received Royal Assent after passing through Parliament as expected. The EU’s top officials are expected to sign the agreement in the coming days, while MEPs will vote on it next week.
