The just released data showed that Britain’s construction output plunged in August, with the sector recording its largest slowdown since December 2012. Additionally, deficit in UK‘s goods trade expanded more than what markets had projected for August, given the weaker demand in the global economy.In Europe, the French industrial sector recorded its strongest output growth in more than two years for August. However, Euro zone's third-largest economy experienced a more than predicted drop in industrial productivity for August. Across the Atlantic, investors will eye speeches by key Fed officials later today to gauge any change in their stance with regards to Fed’s rate decision.
The session ahead will see central banks of major economies drawing a lot of market attention, starting with the Bank of England’s interest rate decision. Markets will be mostly concerned about the voting pattern of the MPC rate setting committee and the tone in the BoE minutes which will accompany today’s rate announcement.The UK central bank’s decision will be followed shortly after by the publication of minutes of ECB’s September meeting. The minutes could impact the Euro, if the central bank confirms recent speculation about expanding its asset purchase programme in the coming months. Finally, the spotlight will be on minutes of the previous month’s FOMC meeting for detailed insights on what conditions led to the Fed delaying its decision to raise interest rates in September.
Upbeat UK manufacturing and industrial output data for August has buoyed the Pound against its key peers. While the data has lent support to Sterling, the recent batch of weak UK economic updatessuggests that the British economy is facing headwinds for industrial activity. The data comes as the BoE convenes for its latest interest rate decision meeting.Meanwhile, in Europe, data earlier today indicated that Germany’s August industrial production slumped at its fastest pace in a year, giving rise to fears that the economy was impacted by slowing growth in China. Across the Atlantic, Fed’s report on consumer credit and mortgage applications data might attract some market attention.