During the afternoon session on Friday the Governor of the Bank of England told reporters that Interest rates could rise in the "relatively near term". In the clearest indication yet that there could be a rate rise as early as November, Mark Carney suggested that it was time for the bank to "ease its foot off the accelerator".
The next opportunity for a change in interest rates is the Bank's monetary policy committee meeting on 2 November. The comment lead to analysts speculating that what we may see next month is a reversal of the rate cut the Bank made in the aftermath of the EU referendum.
On Friday morning the Pound weakened after the current account figures revealed a bigger than expected deficit between the value of imported and exported goods, services, income flows and unilateral transfers during the previous quarter. The UK’s current account deficit is now judged by the ONS to be 5.9 per cent of GDP, up from its previous estimate of 4.4 per cent which is the highest on record.This reflects changes in ONS estimates of flows of cross-border investment income, rather than trade transactions.
09:30 - GBP: manufacturing PMI expected to decrease to 56.3
15:00 - USD: ISM Manufacturing PMI Is forecast to fall to 57.9