The only piece of data for the pound yesterday was the release of the UK manufacturing PMI. UK manufacturing growth picked up in July, a survey has suggested, after a 26-month low in June. Manufacturing accounts for around 10% of the UK economy, the index rose to 51.9 in July, from 51.4 in June. A figure above 50 indicates expansion.
However, it remained below the average of 54.3 the sector has had since April 2013. Production expansion remained dependent on consumer goods manufacturing, which offset a contraction in investment goods such as plant and machinery, Markit said. In addition, demand for exports was being sapped by the sterling-euro exchange rate as new export orders contracted for the fourth consecutive month in July.
The Athens stock exchange ended its torrid first day of trading in five weeks 16.2 percent lower, after it reopened for the first time in five weeks. Greek banking stocks were the worst hit with Alpha Bank, Attica Bank and Eurobank Ergasius, Bank of Piraeus and the National Bank of Greece all closed around 30 percent lower - the daily volatility limit. Banks make up about a fifth of the index. It had fallen behind by 22.87% just minutes after opening for trade. Not long after the market reopened at 07:30 GMT, the Athex had plunged to 615.16 points, down by 182.36 points from the 26 June close.
There were also some reasonable eurozone PMI manufacturing figures, with German and Eurozone manufacturing as a whole beating consensus. And even though Greek banks dropped up to 30%, elsewhere the sector was buoyed by positive results from HSBC and Commerzbank.
The pace of growth in the U.S. manufacturing sector slowed in July and disappointed expectations, according to an industry report released on Monday. The Institute for Supply Management (ISM) said its index of national factory activity fell to 52.7 from 53.5 the month before. The reading was shy of expectations that the pace would remain unchanged at 53.5, according to a Reuters poll of economists.
New orders rose to 56.5, up from 56.0 in June and marking the highest reading since December. The prices paid index fell to 44.0 from 49.5, compared to expectations for 49.0. The employment index slipped to 52.7 from 55.5, also short of expectations for a reading of 54.7, while the imports index hit its lowest level in a year at 52.0. The July numbers are the latest in a string of mixed reports for U.S. factories, which have struggled to overcome a stronger dollar, weak overseas demand and a rocky first quarter.
There are no key announcements today.