Top tier U.K. news and catalysts were light and volatility was relatively low, but the British pound saw some action nonetheless. Global risk sentiment and geopolitical themes were likely the main drivers for Sterling’s eventual net negative performance.
United Kingdom Headlines and Economic data
Flash U.K. Manufacturing PMI at 50.1 in June vs. 40.7 in May – we saw a broad move lower in Sterling that seems to correlate with this news, but the negative was short lived as the pressure stabilized on positive global risk vibes during the U.S. session on rising U.S. tech sector strength.
No direct major catalysts or headlines from the U.K. on Wednesday, so the uniform drop in Sterling on the session is likely due to broad risk aversion sentiment and tariff news. Traders moved towards safety as news of rising covid cases, negative global economic outlook, and geopolitical tensions (U.S. is considering $3.1 billion in new tariffs on products from France, Germany, Spain and the UK) hit the wires.
No major economic or headline catalysts for Sterling on Friday, but we did see a broad move lower in the British pound against the majors, likely on Brexit talks uncertainty and as the U.K. eases lockdowns as COVID-19 infections rise globally.