UK manufacturing PMI figures were released yesterday morning and disappointed the market with a release of 53.3 compared to 53.6 that was expected. This led to the Pound weakening against the Euro and the Dollar in the early part of the morning alongside the increase in the number of new daily coronavirus cases increasing to 938 yesterday in the UK. The government has urged pharmaceutical companies to stockpile six weeks’ worth of drugs to prepare for the end of the Brexit transition period at the end of the year. Japan’s foreign minister Motegi will be visiting the UK tomorrow to discuss a bilateral free trade deal between the two countries.
French and German manufacturing PMI data both came out better than expected yesterday morning, with the same release for the Eurozone also beating forecasts. The Ifo Institute has published a survey showing that the auto industry expects an increase in activity in the next few months although the indicator for the current situation is still negative. Overall, the Euro remains largely unchanged against the Pound and Dollar.
Although US final manufacturing PMI failed to give the Dollar any strength with a worse than expected reading, ISM manufacturing PMI beat expectations with both readings causing volatility for the greenback. House of Representatives Speaker Pelosi has confirmed that further negotiations over the next US coronavirus rescue package will continue today, with yesterday’s talks described as ‘productive’. Factory orders are due at 3:00pm which could cause some short-term volatility.