03/01/2018 - UK Manufacturing Data Retreats From Four-Year High

GBP

U.K. manufacturing growth slowed more than forecast in December, retreating from a four-year high.
 
IHS Markit’s Purchasing Managers Index for the industry slid to 56.3, below the median estimate of economists for a reading of 57.9. However that pace of expansion left the quarterly average at the highest since 2014.The survey showed that growth in output, new orders and employment slowed from November’s highs, albeit to levels that still reflect solid gains. Meanwhile, the gauge of input costs eased to a four-month low. While lower than forecast, December’s reading rounds off a solid year for the U.K.’s manufacturing sector, which has been boosted by the weaker pound in the wake of 2016’s Brexit vote.
 
Brexit minister David Davis said yesterday that the UK will seek to ensure financial services are included in its future trade deal with the European Union. Davis was quoted as saying "We are looking at the full sweep of economic cooperation that currently exists and determining how that can be maintained with the minimum additional barriers or friction".
  
The future of the financial sector's access to EU markets has come under question after Brexit negotiator Michel Barnier suggested services will not be included in a free trade deal. City groups have slammed Barnier's approach, saying the EU will not benefit from hurting the UK's financial services sector. The City of London Corporation has said businesses and families benefit from integrated financial markets, and that fragmentation will increase costs for firms.

Key Announcements

15:00- USD: US ISM Market Manufacturing PMI  (Dec) expected to remain unchanged
19:00- USD FOMC meeting Minutes