The British monthly GDP is announced on Friday at 09:00 MT time.
British manufacturing PMI dips to 55.9 in September
In September, the British manufacturing sector kept expanding at a solid clip, although at a slower tempo, as industry data disclosed on Monday.
According to market research group Markit, its British manufacturing PMI edged down to a seasonally adjusted 55.9 the previous month versus August’s outcome of 56.9. Financial experts had hoped the index would slump to 56.4 in September.
On the index, an outcome above 50.0 stands for industry expansion, while the reading below points to contraction.
Output as well as fresh orders both rallied at above long-run average rates. Evidently, the latest poll indicated that cost inflationary pressures jumped. It reflected a combination of soaring commodity prices, the exchange rate, not to mention increased supply-chain pressures.
The currency pair GBP/USD reached 1.3311 versus 1.3318 ahead of the publication of the data. Meanwhile, EUR/GBP traded 0.8820 versus 0.8825 earlier.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.