The pound is mostly lower against EUR and USD as markets continue to trade in fairly tight ranges. However, the pound remains under pressure as yesterday’s consumer credit and mortgage data revealed a soft borrowing market in the UK and further pointed to a weaker than preferred housing market. Despite the fact that data met expectations for the most part, the pound continues to underperform against its counterparts as market participants largely view the UK recovery as slow and behind schedule. Adding to the gloomy UK picture this morning is the Gfk Consumer Confidence survey which printed slightly better than expected a decline of 31 versus –33, however posting a result worse than the month prior reflecting a drop off in positive consumer sentiment in UK as people are slowing their spending. With only Nationwide house prices to come out tomorrow along with PMU Manufacturing, which is expected to show a measure of 49, thus indicating a contraction as it is a measure below 50, expect the pound to remain under pressure for the remainder of the week. All eyes will be on Friday’s Non Farm Payrolls data out of the US, with the world’s largest economy expected to show it added 100K payrolls, slightly less than the month prior, and the unemployment rate is expected to stay at 9.1%.
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