Following the release of a significant upgrade to the UK’s PMIs for September, there was a little, though noticeable, increase in the value of the Pound relative to the Euro and the Dollar, which signals the economy did better than previously believed.
The S&P Global Services PMI for September was revised upward to 49.3 from 47.2 in the preliminary estimate, suggesting that the economy avoided a significant decline and instead remained stable from its reading of 49.5 in August.
The public release of the initial estimate indicated a sharp slowdown, which was later attributed to an extension of the Pound’s multi-week slide at the time. Therefore, Wednesday’s positive surprise can be viewed as supportive of the currency.
Markets are still unsure if the Fed will raise interest rates again, and recent statements from Fed policymakers imply that the rate-setting committee is split on whether to act. Today’s talks are likely to highlight those contrasts, as Bowman will likely favour a walk while Goolsbee would warn against it. Sunak will speak at the Conservative Party conference today.