The UK PMI manufacturing index was lower than expected with a decline to 54.6 for February from a revised 55.7 the previous month.
The index remained above the long-term average and overall confidence remained firm with further gains in employment while inflation pressures remained strong. The net consumer lending, money supply and mortgage approvals releases were all stronger than expected, but Sterling came under renewed selling after the PMI data with a retreat to below 1.2350.
Wider US strength subsequently pushed the pair to 6-week lows below the 1.2300 level while the Euro strengthened to 0.8580. The government lost an Article 50 Amendment vote in the House of Lords over guaranteeing the rights of EU citizens in the UK. Although there will be expectations that the vote will be over-ruled in the House of Commons, there was some negative impact on Sterling sentiment and the UK currency remained firmly on the defensive on Thursday.
Sterling No sooner had the financial press written that Sterling was on the skids due to the Chancellor being on the way out, than PM Starmer woke up to the need for some TLC for his beleaguered Chancellor and executed a handbrake turn to administer some gruesome bedside cheer to the apparently on life support […]
EU Inflation With the ECB annual symposium meeting in sunny Sintra, Portugal, inflation is very much on President Lagarde’s mind ; that is because it is showing signs of rising with the monthly inflation rate showing an increase of 0.3% and that presages a break above the target 2% rate just as she and her colleagues […]
Gold With Gold accounting for the second highest proportion of Central Bank reserves after the USD and the mood music shifting to it assuming a greater influence on future reserves management, it is worth looking at the numbers behind that. In the 1960s, Central Banks held the highest amount historically of 38,000 tons of gold. […]