The pound enjoyed a mildly positive day against the euro yesterday while remaining well over 1% up on the US dollar this week – albeit still 1% down on last week. However this morning it has accelerated strongly, gaining almost 0.4% in early trading against the euro.
Yesterday’s data included the CBI’s industry order book balance, which beat expectations to rise 2 points, its strongest level since May 1988.
This morning we will see the Markit/CIPS purchasing managers’ index (PMI) for services and manufacturing. In normal times anything over 50 is positive, but the markets will be looking for something closer to 63 or 65 as an indication that the UK economy is powering out of the pandemic.
Tomorrow is the interest rate decision, so be prepared for market movements even if, as expected, there is no change in either interest rates of levels of quantitative easing.
