Money News Overview Monday 3rd June: ECB interest rates and US Non-Farm Payrolls expected to dominate markets this week

Pound Sterling has climbed against the other currencies in the G10 following Gross Domestic Product figures released by the Office for National Statistics.

Purchase Manager Index are the major releases this morning.

The UK is set to release its Manufacturing Index, where It is expected to post a positive number. Last month, markets saw the sector fall below the 50-expansion level. However, forecasts are expected to come back in above the 50 level at 51.3.

As the week goes on, German Employment data is the key release tomorrow. Markets are poised to tune in to this release as employment is a key indicator to the current state of the economy.

Wednesday is the busiest day of the week in terms of economic releases, with the European Central Bank releasing their Interest Rate Announcement. Markets have pencilled in a cut of 0.25%.

In the build up to this event, the currency market may experience some volatility.

As for key US releases this week, Non-Farm Payrolls are released on Friday. Markets are forecasting a rise to 190k (from 175k)

The pound has continued to stay at yearly highs for the GBP/EUR rate. As we get closer to the release of the ECBs interest rate announcement on Wednesday, market fluctuations will be heightened. Any cut in rate and markets will likely see the pound increase its strength against the euro.

As for GBP/USD we are still sitting at the highest level since March.