GBP
The recovery in British manufacturing continued in the three months to April,
but the pace of growth eased and export orders growth remained sluggish,
according to the latest CBI Quarterly Industrial Trends Survey. The figure does
not bode well for the first official estimate of UK economic growth for
the first three months of the year that will be published this morning. A
slowdown from the 0.6 percent growth seen in the final three months of 2014
could dent the Conservatives election chances.

GBP
The recovery in British manufacturing continued in the three months to April,
but the pace of growth eased and export orders growth remained sluggish,
according to the latest CBI Quarterly Industrial Trends Survey. The figure does
not bode well for the first official estimate of UK economic growth for
the first three months of the year that will be published this morning. A
slowdown from the 0.6 percent growth seen in the final three months of 2014
could dent the Conservatives election chances.
 
Also yesterday according to a report by the British Chambers of commerce, the
majority of British exporters saw their sales grow last year. 59% of businesses
sending their goods overseas recorded sales growth in 2014. The BBC director
general John Longworth said while he was encouraged by the results, politicians
need to do more to support new exporters and close Britain’s trade deficit.

EUR
Markets welcomed the news yesterday as the Greek
government decided to bulk up its bailout negotiation team and lessen the influence
of finance minister Yanis Varoufakis. This follows an apparent breakdown
in relations between Varoufakis and some of the Eurozone’s other finance
ministers. Markets reacted to this news with Greek 3 year bond yields dropping
from 26.31% to 22.32%. 

USD
Services PMI data from April indicated a sustained upturn in US service sector
output, although the rate of growth eased from the seven-month high recorded in
March. The figure came in at 57.8, below a forecast rate of 59.5. The lastest
index reading was still well above the 50 threshold indicating growth. On the
back of this we did see the USD weaken off in the afternoon.

Key
Announcements
09:30 – GBP – The preliminary GDP is forecast to
show a contraction in the UKs economy
15:00 – US – Consumer confidence is expected to increase

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