Poor Start to December for Sterling
The pound lost ground against the euro on Monday as Manufacturing PMI data from the UK confirmed a contraction in the sector for the seventh month in a row. Brexit uncertainty, the impending general election and a slowdown in global growth have all weighed heavily on the sector in recent months. Although the headline figure was slightly better than expected, the pound lost ground against its European counterpart but held steady against the weakening US dollar.
Meanwhile, the European currency was boosted after the release of German manufacturing PMI numbers, showing the strongest performance in the sector in the last 5 months. Manufacturing numbers from Germany are closely watched and the better than expected posting pushed GBP/EUR down into the mid-1.16’s.
The US dollar had a fairly miserable start to the week after the release of ISM manufacturing PMI numbers missed expectations by a fairly significant margin. The dollar subsequently weakened against most of its major counterparts, for the second session in a row. At the time of writing, GBP/USD is trading in the low-mid 1.29’s.