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3 Mar 2015
UK services PMI tomorrow to support the outlook for UK growth – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team reviews the UK data releases, and further comments on the impact on UK’s short-term rates and the pound.
Key Quotes
“UK reported its second stronger than expected PMI for the week. The construction PMI for February came in at 60.1 from 59.1, beating expectations that had anticipated a small decline. This follows the 54.1 reading of the manufacturing PMI yesterday that increased from 53.1.”
“The service PMI, which covers the largest part of the UK economy, will be reported tomorrow. After a modest slowing in the UK economy beginning around the middle of last year, it appears to be re-accelerating.“
“This is gradually taking on toll on the short-term UK rates. The December 2015 short-sterling futures contract has seen the implied yield rise from 66 bp in mid-January to 83 bp now.”
“Sterling itself is not finding much traction, however. It briefly dipped below the 20-day moving average for the first time since early February. The euro is stalled near GBP0.7300 for the third consecutive session and appears likely to resume its decline.”
Key Quotes
“UK reported its second stronger than expected PMI for the week. The construction PMI for February came in at 60.1 from 59.1, beating expectations that had anticipated a small decline. This follows the 54.1 reading of the manufacturing PMI yesterday that increased from 53.1.”
“The service PMI, which covers the largest part of the UK economy, will be reported tomorrow. After a modest slowing in the UK economy beginning around the middle of last year, it appears to be re-accelerating.“
“This is gradually taking on toll on the short-term UK rates. The December 2015 short-sterling futures contract has seen the implied yield rise from 66 bp in mid-January to 83 bp now.”
“Sterling itself is not finding much traction, however. It briefly dipped below the 20-day moving average for the first time since early February. The euro is stalled near GBP0.7300 for the third consecutive session and appears likely to resume its decline.”