After welcoming the chancellor’s new fiscal plans last Thursday, sterling begins the week marginally up against the US dollar compared to this time last Monday. The pound is also much stronger than the euro.
Rishi Sunak will deliver a speech on innovation at the CBI employers annual conference in Birmingham today. The prime minister is expected to face pressure from business to lighten the economic load brought on by Brexit. This includes opening Britain’s doors to more immigration to fill significant gaps in the UK’s labour market.
A quiet week ahead for key data releases in the UK however, markets will be expecting the S&P Global/CIPS UK Manufacturing PMI (flash) for November. In the last data, the manufacturing purchasing managers’ index was revised slightly higher to 46.2, pointing to the steepest pace of contraction in the sector since May 2020. Markets have forecast that number to contract again in Wednesday’s data release.
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In the eurozone, Markets have just seen Germany’s month-over-month PPI data. The index decreased to -4.20%, much lower than market forecasts of 1.1%.
While on Thursday, Germany’s IFO business climate will be out. This will give an indication of how entrepreneurs’ sentiments about current business situation in Germany, as well as their expectations for the next 6 months.
Over in the US, Markets will be anticipating a variety of data releases from the US, including durable goods and new home sales.
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