Back
10 Dec 2014
Sterling struggles on amid poor domestic data - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted the conditions that have surrounded Sterling of late.
Key Quotes:
"Ideas that the UK economy was enjoying new momentum late in the year were stopped cold by the disappointing industrial production and manufacturing data. October industrial production and manufacturing were expected to have both risen by 0.2%."
"Recall the October manufacturing PMI rose to 53.3 in October from 51.6 in September. Today the UK reported industrial output fell by 0.1% while manufacturing output slumped 0.7%."
"The implied yield of the December 2015 short-sterling contract is nearly 10 bp higher than yesterday. UK gilts are outperforming."
"Separately, BRC sales were stronger in November, rising 2.2% year-over-year after a 1.4% increase in October. Like-for-like increased 0.9% after a flat October."
"Also, MPC member Weale, who has favored an immediate hike in rates, reiterated his hawkish stance. The other dissenting hawk McCafferty speaks Thursday."
Key Quotes:
"Ideas that the UK economy was enjoying new momentum late in the year were stopped cold by the disappointing industrial production and manufacturing data. October industrial production and manufacturing were expected to have both risen by 0.2%."
"Recall the October manufacturing PMI rose to 53.3 in October from 51.6 in September. Today the UK reported industrial output fell by 0.1% while manufacturing output slumped 0.7%."
"The implied yield of the December 2015 short-sterling contract is nearly 10 bp higher than yesterday. UK gilts are outperforming."
"Separately, BRC sales were stronger in November, rising 2.2% year-over-year after a 1.4% increase in October. Like-for-like increased 0.9% after a flat October."
"Also, MPC member Weale, who has favored an immediate hike in rates, reiterated his hawkish stance. The other dissenting hawk McCafferty speaks Thursday."