UK economic data shows improvement however the pound declines (Dayle Littlejohn)
UK economic data this week has performed very well. Markit Manufacturing released Tuesday started the momentum with a release of 56.1 compared to last months 53.6. Wednesday’s PMI construction numbers also exceeded expectation with 54.2 compared to the consensus of 52.8 and yesterdays Markit Services numbers finished the run nicely with an improvement to 56.2. Many analysts actually believed a decline into the 54s was expected for the service numbers.
With economic data impressing you would have thought the pound would have gained momentum this week, however this has not been the case. It seems the pound is going through a jittery period due to the Supreme Court verdict this month.
The feel on the market is for a sharp fall if the Supreme Court overturn the High Court decision. However on the other hand we could see the pound gain momentum if UK Prime Minister Theresa May has to seek Parliament approval before triggering Article50 and start the process of leaving the EU.
UK economic data to look out for next week is NIESR GDP numbers at 3pm Tuesday and Manufacturing and Industrial production released Wednesday morning.
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