Yesterday UK Construction PMI figures fell to 46.0 in June, down from 51.2 in May, the seasonally adjusted figure dropped below the neutral 50.0 threshold for the first time since April 2013. The latest reading pointed to the weakest overall performance for exactly seven years, but the rate of contraction was much slower than seen during the 2008/9 downturn.
The fallout from Brexit continues to have a detrimental effect on demand for the single currency, with nearly all EUR exchange rates registering losses on Monday. One of the major concerns being that the UK’s decision to exit the EU has provided many European populist parties with a louder voice than before. Should several other EU members hold referendums of their own, the uncertainty alone could lead to the demise of the EU and of the single currency.
Italy is in talks with the European Commission to receive a bailout to prevent a financial crisis, but there are growing concerns that the process may take too long and that Prime Minister Renzi may have to use public funds to bail out the country rather than funds from creditors.
EUR: 09.00 – Services PMI June expected to remain the same at 52.8
GBP: 09.30 – Services PMI June expected to decrease from 53.5 to 52.7
GBP: 11.00 – BOE Governor Mark Carney Speech
USD: 15.00 – Factory Orders (MoM) expected to fall from 1.9% to -0.9%