In a busy day for economic releases, the just released UK manufacturing PMI indicated that activity in the sector for August expanded at a slower than expected pace, showing signs of weakness in the third quarter. Separately, the number of mortgage approvals edged higher than market expectations for July, suggesting strong homebuyer confidence amid record low borrowing rates.The Euro has rallied against the majors today even after data showed that Euro zone’s factory growth eased last month, missing expectations of an unchanged reading. Across the Atlantic, investor focus will be on keynote ISM manufacturing survey for August, with markets anticipating slight weakness in the advance reading.
The just out revised GDP data confirmed that Britain’s economy expanded in line with preliminary estimates for the second quarter, buoyed by healthy growth in total business investments and private consumption. Moving ahead, Sterling investors will keep a tab on Mark Carney’s statement at the Jackson Hole Symposium tomorrow, to see if the BoE Chief offers any hints about the timing of a rate rise in the UK.Later today, the preliminary German consumer price inflation reading will offer further direction to the Euro against the majors. Across the Atlantic, personal consumption expenditure data, along with the revised Reuters/Michigan consumer morale survey, will attract attention among market participants in the latter half of the trading session.
The Nationwide Building Society earlier today reported that UK house prices growth slowed more than market consensus for August, indicating that prices might be stabilizing at the current levels. The annual rate of price growth was the weakest since June 2013.Across the Atlantic, investor focus will be on today’s revised US GDP data and the consensus estimate is that the US economy expanded at a faster pace in the second quarter than initially forecasted. Also of interest would be US jobless claims and pending homes sales data which are slated for release later today. In Europe, the final second quarter GDP figures confirmed that growth in the Spanish economy was the fastest in eight years.