Following on from yesterday Theresa May’s schedule of Brexit, the unsurprisingly announcement meant bad news for the Pound. Sterling fell to a three-year low against the Euro and also hit its lowest level against the US Dollar. CDU’s Michael Fuchs, a senior lawmaker in Chancellor Angela Merkel’s Christian Democratic Union says a so-called Hard-Brexit will result in UK negotiating position with the EU more difficult.
This morning we had UK Construction PMI report coming in at 52.3 beating expectations of 49.1. Despite these big gains, it had zero effect on the Pound. The Pound is currently free-falling for the past two days following from the Conservative Party conference. At one point, the Pound fell to $1.273, its lowest level against the USD since 1985. Regardless of the turmoil in FX markets and the “Hard Brexit” fast becoming the main theme, share prices rose. The FTSE 100 share index soars to 7,100 for the first time since April 2015.
Tomorrow we have UK service PMI at 09:30 GMT, expected at 52.1 and also US crude oil inventories at 15:30 GMT.
Latest FX by William Busby