We start the week with fresh PMI data being released for the EU and the UK.
Already released this morning, French PMI figures have revealed that the manufacturing & services sector has fallen slightly short of expectations.
The euro has already begun the week on the back foot following the latest data this morning, with the German PMI to follow very shortly, before EU and UK data at 9am.
The pound had a strong ending last week against all its major peers, notably the euro, making for the biggest weekly advance since November 2023. This was helped by a ‘hawkish, Bank of England policy decision, choosing to leave the headline rate as it is for another month.
Sterling benefited as a result of the decision to hold interest rates. The 8-1 vote to maintain the rate at 5 percent signaled that the MPC was in agreement on the need to keep interest rates unchanged. Had more members voted for a cut, the pound may have come under pressure.
Tomorrow, we have the German IFO business climate due, followed by the US Home price index and conference board survey.
Last week, the FED cut its rates by 50 basis points, with a further rate cut expected in the coming months.
Later in the week, a number of FED policy makers will be talking and should give further clues on the expected rate cuts.
For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.