French and German PMI figures came in this morning revealing mixed data, that has seen the euro weaken off against the pound.
Following the eurozone PMI data, the UK’s own flash estimates have shown a decline from last month’s expansion of 50.4 in the services sector.
However, manufacturing PMI data for the UK has revealed that the sector has grown by 1.9 percent supporting the pound up to 54.9.
Later in the day for the US, we have the PMI Manufacturing figures along with the New Home Sales numbers.
The current uncertainty about how quickly the Fed will cut rates means that the US PMI data Is likely to garner more attention. Markets will also shift their attention to this week’s Q1 GDP for the US.
Later this afternoon, two Bank of England policy makers are scheduled to speak, therefore markets will be looking for any clues on interest rate cuts.
Overall, markets remain volatile with the pound dropping off yesterday, following rising expectations that the Bank of England could potentially cut rates ahead of the Federal Reserve.