Yesterday, the flash data updates for the UK, as mentioned by Jack in yesterday’s update, surprised most in the market by posting far higher than expected figures regarding services and manufacturing. On the services side, the numbers provided evidence of a greater rebound with regards to those returning to work in the sector – with the Prime Minister’s announcement on the re-opening of pubs, restaurants and barbers on the 4th of July likely to provide additional support to the sector over the coming weeks. Manufacturing on the other hand posted a score high above expectation; with its 50.1 score showing not only a rebound in the sector, but also an expansion.
As far as sterling impacts go, this is exactly the kind of news the pound needed to attempt to stem the flow against the euro over the last two weeks of closing at a loss. Despite the overall outlook in the short-term being fairly dismal for the pound, with Brexit fears now very much back in the forefront of trader’s minds; the more positive tone set by the numbers going into July means the foundations are set for GBP to at least attempt to mount a comeback.
With large parts of the economy reopening alongside the new laws on social distancing aimed at bolstering footfall numbers, one can only hope the sun stays out long enough to keep Britain outdoors and spending.
Have a great day,
Author: Joshua Haden-Jones, Senior Relationship Manager
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