It's been a torrid week for the pound from a data perspective
- UK May mortgage approvals 65.4k vs 65.5k expected
- UK June manufacturing PMI 48.0 vs 49.5 expected
- UK June construction PMI 43.1 vs 49.2 expected
- UK June services PMI 50.2 vs 51.0 expected
To save you the details from clicking on the individual data points, here's a summary:
- Weakest consumer credit growth since April 2014
- Weakest manufacturing PMI print since February 2013
- Weakest manufacturing output component since October 2012
- Weakest construction PMI print since April 2009
- Weakest composite PMI print since July 2016
The PMI releases also sees the services sector stagnating towards the end of Q2 with Markit suggesting that this should lead to a 0.1% contraction in the UK economy for the second quarter of the year. Adding that it would be "unprecedented for the BOE to not loosen policy with the all-sector (composite) PMI at its current level".
Add in BOE governor Carney's comments overnight and the ongoing Brexit uncertainty amid the Tory leadership race, it's hard to argue for pound strength from a fundamental perspective at this point in time.
