GBP
The UK’s manufacturing sector grew more than expected last month according to
Markit’s latest Purchasing Manager’s Index (PMI), as solid domestic demand
offset weaker orders from other markets. Markit’s PMI survey came in at a
four-month high of 53.5 in November, ahead of the 53 expected and the revised
53.3 in October, offering a much-needed boost to George Osborne ahead of his
Autumn Statement.

USD

GBP
The UK’s manufacturing sector grew more than expected last month according to
Markit’s latest Purchasing Manager’s Index (PMI), as solid domestic demand
offset weaker orders from other markets. Markit’s PMI survey came in at a
four-month high of 53.5 in November, ahead of the 53 expected and the revised
53.3 in October, offering a much-needed boost to George Osborne ahead of his
Autumn Statement.

USD
Manufacturing in the U.S. expanded in November at a faster pace than projected,
signalling the world’s largest economy is rising above a global slowdown.
 The Institute for Supply Management’s factory index was slightly
lower at 58.7 last month, the second-strongest level since April 2011,
compared with 59 in October. It exceeded the median forecast, readings greater
than 50 indicate growth. 

Orders over the past four months have been the strongest in a decade as growing
demand from American consumers makes up for any easing among foreign customers.
Continued progress in the jobs market and the plunge in gasoline prices may
give Americans an even greater ability to spend in coming months, supporting
manufacturing as the year draws to a close. 

One potentially dark cloud in the report was that factories’ clients reported
they had about enough goods on hand, suggesting bookings may not pick up much
more. The customer inventory index rose to 50, the break-even point between
having too much and too little stock. That was its highest reading in three years.

EUR
The ECB are set to debate whether cheaper energy is a blessing or a curse. When
the European Central Bank president convenes his Governing Council this week,
the 24 policy makers will have to judge how the plunge in oil prices will
affect inflation expectations in the euro area and what they should do about
it. Crude is experiencing biggest and most aggressive drop in three years,
after OPEC opted not to reduce a supply glut, puts downward pressure on
consumer prices that are already close to stagnating. 

German council member Jens Weidmann signalled how oil is now a focal point in
the quantitative-easing debate when he said last week that the drop in energy
costs is like a mini stimulus package, suggesting no need for the ECB to expand
its current measures. The opposing view, previously argued by Draghi and ECB
Chief Economist Peter Praet, is that temporary price shocks can deliver lasting
harm to an economy as feeble as the euro area’s. This debate could trigger the
implementation of Quantitative easing ( QE)  across the
Eurozone. 

RUB
The Russian Rouble plunged to a record for a third day, prompting speculation
Russia’s central bank intervened to stem losses triggered by tumbling oil
prices. The currency weakened as much as 6.6 against the US dollar percent
 the largest daily move since 2003.

Today
At 9:30am  thismorning we have Construction PMI data out from the UK.
The figures are forecast to fall slightly to 61.2 from 61.4. Should we match or
exceed the forecast we would expect further GBP strength against its currency
peers. 

Key
Announcements:

09:30- GBP: PMI Construction (Nov) expected to be lower at 61 from 61.4
13:30- USD: US Federal Reserve Chair Janet Yellen makes a
speech  

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