020 7898 0500The only release of note from the UK on Friday was services PMI which had been expected to dip to 54.7 from the previous month’s eight-month high of 55.1. However, the reading actually showed 53.5 which was rather disappointing. Still, there are some positives to take from it, as there was a clear upturn in business activity.
Sterling had another bad day at the office as it tumbled close to its lowest level since September 2017. It hovered around the $1.30 mark throughout the day following comments made by Carney about the threat of a no-deal Brexit. It heaps more pressure on Theresa May to do her best to get a deal in place before we exit the European Union.
This week could see further sterling volatility, with a raft of major economic data releases on the schedule. Today we will see new car sales in July and tomorrow we have the Halifax house price index. However, Friday is the big day, where we will see the balance of trade figures for June, manufacturing, industrial and construction output, and the all-important GDP growth rate figure for the second quarter of 2018.
