The pound is higher against the USD but slightly lower against the EUR this morning as German PMI manufacturing data surprised analysts’ forecasts and posted a gain of 52.0 versus an expected measure of 50.6. Additionally this morning’s EU docket showed gains for EU PMI Manufacturing and Services data, bolstering the single area currency despite concerns regarding the sovereign debt issues. With a busy day today in the EU in terms of economic releases, today the market will also see the release of the ZEW Survey, which measures business sentiment in Germany and the Eurozone. Sterling is nearing three month highs against the USD as traders are shifting some flows into sterling due to concerns about pace of recovery and additional quantitative easing in the United States are taking center stage for analysts especially as the central bankers meeting approaches at the end of this week in the United States. With only CBI Trends scheduled for release today in the UK, expect the pound to remain in ranges and trade in response to data in Europe and overseas.
Comments