Positive business surveys lift sterling

GBP

Sterling rebounded from last week’s lows on Monday after positive business surveys buoyed the pound. December's Purchasing Managers Index Survey for Britain’s services came in above expectations, with a final reading of 50, beating the expected reading of 49.1. This reflects that optimism amongst businesses has improved markedly since the election result. However, there is investor caution as concerns are still very much present around Brexit uncertainty. Parliament resumes today and will debate the Brexit Bill, with plenty of interest around whether an extension to the Brexit Bill can be completed.

Key Announcements

10.00 – EUR: Consumer Price Index (YoY) (Dec); expected to remain at 1.3%.
15.00 – USD: ISM Non-Manufacturing PMI (Dec); expected to increase to 54.5 from previous 53.9.