Yesterday the pound hit fresh 5 month lows against the US Dollar after a voting poll released by YouGov on the Scottish referendum indicated a swing to the “Yes” independence camp with 47% of voters ready to back independence. The uncertainty caused by this preliminary poll and the implications regarding Scottish debt burdens and currency arrangements made traders nervous forcing them to dump the pound.
UK Construction output in Britain grew at its fastest pace in seven months in August, boosting job creation but also putting strain on suppliers, industry data showed on Tuesday. The monthly (PMI) for construction climbed to 64.0 in August from 62.4 in July, exceeding all the forecasts in a Reuters poll of economists. Output grew in each of the housing, commercial and civil engineering markets, Markit said.
Construction of new homes remains below levels needed to meet demand and the Bank of England has said that risks from the housing market pose the biggest domestic threat to the country's economic recovery. Employment growth in construction remained strong, falling only slightly from a record high reported in July
Manufacturing expanded in August at the fastest pace in three years as orders grew by the most in a decade, showing U.S. factories will help power the economy into the third quarter. The ISM index unexpectedly climbed to 59, the highest level since March 2011, from July’s 57.1.
The report was positive across the board with output and new orders all showing an increase. Export sales have shown the fastest rise in three years and manufacturing payrolls hitting the highest level since March 2013
The manufacturing sector continues to have a positive impact on overall labour market conditions in the US .With Janet Yellen keeping a close eye on the labour market this news boosted the dollar as expectations grow that interest rates may rise sooner rather than later.
09:00 EUR - Eurozone market services PMI (Aug) expected to fall to 53.5
09:30 GBP - Markit Services PMI (Aug) expected to fall to 58.5 from 59.1
10:00 EUR - Eurozone Retail sales (July) expected to fall to -0.4% from +0.4%
12:00 USD - Mortgage applications for week ending August 29th
*All times shown are BST
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