The Pound lost some ground yesterday after final services PMI data came out worse than expected at 58.8 compared to 60.1 that was forecast. Senior government officials are reported to believe that there is only a 30-40% chance of a trade agreement with the EU. This comes after EU chief negotiator Barnier commented that the UK wants the benefits of being part of a union without obligations.
Both Eurozone and German final services PMI figures beat the market’s expectations which gave the Euro some support. However, any gains were generally limited at Eurozone retail sales data was released at -1.3% instead of 1.3% that had been expected. However, this morning German factory orders came out much worse than anticipated at 2.8% compared to the expected figure of 5.1% which has put the Euro on the back foot against the Dollar.
The Dollar remains range-bound for the time being with some mixed data releases. Unemployment claims beat forecasts at 881K whilst ISM non-manufacturing PMI came out slightly worse than expected. At 1:30pm, a flurry of employment data such as the unemployment rate and non-farm payrolls will be released which is likely to cause some volatility for the greenback.