It’s been a steady start to the week with Sterling making modest gains. This morning’s UK PMI manufacturing figure jumped sharply to 55.5 in October, expectation of 51.3. The highest level in more than a year. Markit, the financial information provider noted that "the survey is consistent with a quarterly rate of growth of around 1 percent.US numbers are still to come this afternoon."
Tonight the Reserve Bank of Australia’s rate decision will come into focus and will be closely watched for hints of rate cut. The benign Q3 inflation reading released last week opened door for further monetary easing but it's expected that RBA would maintain a wait-and-see approach for the moment. Although the speculations are building up for one to two 0.25bps cut for next year.