The British monthly GDP is announced on Friday at 09:00 MT time.
UK manufacturing surge stabilizes in June
In June, UK factories kept up a steady tempo of surge, although concerns as for global trade as well as Brexit affected confidence about the outlook to a seven-month minimum, as a poll disclosed on Monday.
As a matter of fact, the IHS Markit/CIPS UK Manufacturing Purchasing Managers' Index rallied to 54.4 in contrast with May’s reading of 54.3. It confounded the consensus of 54.0 in a Reuters survey of financial analysts.
June managed to cap the weakest quarter for the UK manufacturing PMI in 1.5 years, and poll compiler IHS Markit told that prospects for the sector that amounts to 1/10 of economic output, seems to be doubtful.
This year optimism went down to its lowest value because factory bosses are irritated by the exchange rate, cost pressures, probable future trade tariffs as well as the UK’s departure from the EU.
The given figures actually got along with a Lloyds Bank poll the previous week that also disclosed that business confidence tumbled to its lowest value this year.
The previous week’s data revealed that the economy's deceleration early this year turned out to be less severe than first anticipated, although consumer and business polls have depicted rather a mixed picture of the second quarter.
By the way, Bank of England representatives weighing up the next lift in interest rates have been trying to draw attention to positive numbers.
Since the beginning of 2018 the turnaround in manufacturing performance has appeared to be remarkable, with striking surge rates late in 2017 turning into some of the poorest rates of expansion observed for the last two years.
British manufacturers had become extremely reliant on work backlogs as well as building up stock when it comes to maintaining output.
Market experts are assured that the British economy will require looking to other sectors if GDP surge meets hopes in the latter half of the year.
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 USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
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.