Figures announced yesterday showed that the UK manufacturing sector returned to growth last month and in fact showed its highest level for 8 month, good news for the UK economy and Sterling exchange rates. The Purchasing Managers Index, which showed a figure of 52.1 yesterday, showed that new export orders continued to increase. This can in part be attributed to a weak pound as with Sterling Euro and Sterling Dollar exchange rates remaining at relatively low levels historically it means UK goods and services are much cheaper to import which helps the UK economy.
The main economic data release today is European Producer Price Index (PPI) which is an index that measures the change in the price of commodities, the expectation is for a fall. Should we see a fall as expected in PPI today then it could result in Euro weakness and therefore a good opportunity for those clients looking to buy Euros.
Across the Pond today we are expecting to hear from the Governor of the FED as he gives a press conference outlining how he and the central bank see the current US economy performing and their expectations going forward, this can often give a good insight into how the Dollar could perform going forward, this will be especially important with non-farm payroll figures announced tomorrow. So, any clients looking for exceptional Dollar exchange rates may want to stay in close contact with your currency broker so you can be kept informed of all the market movement.