GBP weakens as BoE holds interest rates.
After a Key BoE interest rate decision the FX markets saw a large swing yesterday especially in the value of the GBP. As markets prepare for a slate of PMI releases today here’s what you need to know.
GBP (British Pound): The BoE voted 5 to 4 in favor of holding the base interest rate at 5.25%. In the immediate aftermath the GBP fell against the USD and EUR. This decision came off the back of the lower than expected CPI figures released on wednesday.
Today we will have the release of both UK retail sales along with Services and manufacturing PMI data which could cause further volatility with the currency.
EUR (Euro): The EUR continued to react off the other big releases from the GBP and USD for this week with little data releases to swing the currency itself.
Today the Euro will be heavily influenced by a slate of PMI releases for the Eurozone. This will show how both the manufacturing and services sectors are performing throughout the Eurozone.
USD (United States Dollar): The USD settled after Wednesday rate decision, with it performing well especially against the GBP due to the BoE decision.
Looking forward, today we also have PMI released for the US as well which will help to understand the overall health of the US servicing and manufacturing sectors.
Economic Calendar
| Expected | Previous | ||
|---|---|---|---|
| 07:00 | GBP Retail Sales (MoM)(Aug) | 0.5% | -1.1% |
| 09:00 | EUR HCOB Manufacturing PMI(Sep) | 44 | 43.5 |
| 09:00 | EUR HCOB Services PMI(Sep) | 47.7 | 47.9 |
| 09:30 | GBP S&P Global/CIPS Manufacturing PMI(Sep) | 43 | 43 |
| 09:30 | GBP S&P Global/CIPS Services PMI | 49.2 | 49.5 |
| 14:45 | USD S&P Global Manufacturing PMI(Sep) | 48 | 47.9 |
| 14:45 | USD S&P Global Services PMI(Sep) | 50.6 | 50.5 |