Article Highlights

  • Labour Day Holiday: European Banks Closed
  • U.K. Nationwide House Prices better-than-expected: 1.2% vs. 0.6% forecast, 0.5% previous
  • U.K. Mortgage Approvals lower all around: 67.1K vs. 72.0K forecast, 69.6 previous
  • U.K. Manufacturing PMI surprises to the upside: 57.3 vs. 55.4, 55.8
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European banks were on holiday, but thankfully we got data from the U.K. to spark volatility in the forex markets.

There was actually quite a few events to fill up the U.K.’s economic calendar, but the event of the morning London session was the manufacturing PMI data.  It was a big surprise to the upside, making a 5-month high and showing signs of a healthy recovery. Traders reacted with a quick bid for Sterling across the board, but it was neither a big move or long lasting.  Overall, the British Pound is up on the session:

GBP/USD is up 23 pips (+0.14%) to 1.6893, GBP/JPY is up 37 pips (+0.22%) to 172.75, and GBP/AUD is up 69 pips (+0.38%) to 1.8224

The afternoon London session is coming up quick and it should be a busy one thanks to a steady stream of U.S. economic data on the way.

It all begins at 1:30 pm GMT with U.S. unemployment claims, PCE price index (the preferred inflation data by the Fed), and personal income and spending data.  Expectations are for better-than-expected reads on the employment data and a tick higher on the Core PCE Index.  And a little over an hour later is the Final Manufacturing PMI number at 2:45 pm GMT.  This is a low tier event and expectations are for the final read to remain at 55.4.

At 3:00 pm GMT, we’ll get the next round of U.S. data with the focus on the ISM Manufacturing PMI data. This is a expected to tick higher from the previous read (54.3 vs. 53.7 forecast).  If better-than-expected, this could help reverse the Greenback’s fortunes after taking a hit on yesterday’s weak GDP number.

Finally, Fed Chair Janet Yellen will be giving a speech to community bankers in Washington, but expectations are that high we won’t see anything different from the FOMC statement released just yesterday.

See also:

Asian Session Recap

U.S. Session Recap

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