020 7898 0500That is the question. Yesterday, sterling lost ground against the euro but made gains against the US dollar ahead of Super Thursday. Economic data from the UK was disappointing as the purchasing managers’ index (PMI) for construction missed forecast and fell to its lowest level since August 2016. Heightened political uncertainty, as well as enhanced worries about the economy are potentially to blame for the slowdown. However, it is only a small part of the economy and it is hoped by many to be a blip rather than a downturn.
The day ahead is very busy with major PMI data to hit the wires in the form of the service sector, which makes up a large part of the UK economy. However, the big highlight will be the BoE’s interest rate decision and quarterly inflation report – dubbed ‘Super Thursday’. Last time around there was a surprise as three members voted for a hike. As a result, the voting pattern will be closely watched.
In addition, BoE Governor Mark Carney is due to speak following the release of the inflation report. His rhetoric will be deciphered for clues on future monetary policy. Finally, we have an update on the BoE’s forecasts from growth and inflation. Due to the inconsistent comments from voting members this could result in some sterling volatility.
