Spreadex Market Update

Pound trails euro as UK PMIs once again outshone by Eurozone



A (very slightly) better than forecast services PMI helped lift the pound and hamper the FTSE this Thursday.

Arriving at 54.2 against the 54.1 expected and the 53.8 seen in November, the services reading make a welcome change from the disappointing manufacturing and construction numbers posted earlier in the week. Not that the PMI was without its problems, as Brexit continues to impact and delay businesses’ long-term decisions.

Still, it was positive enough to send the pound 0.2% higher against the dollar, helping cable back towards $1.355. This move quickly erased the FTSE’s meagre gains, leaving the UK index flat at 7670 despite growth from BP and Shell following a 2 and a half year high-hitting performance from Brent Crude..

While sterling looked good against the greenback, against the euro it struggled, dipping 0.2% as the currency indulged in the Eurozone’s latest round of stellar data. Following a strong services reading the region’s composite PMI reached a near 7 year high of 58.1, a figure so good that even with the euro re-crossing $1.205 with a 0.3% rise the DAX and CAC maintained their own 0.9% and 1% surges respectively.

Looking to this afternoon and the Dow Jones may finally reach the magic 25000 mark. The futures currently have the Dow climbing 0.2% after the bell, a move that would leave the index 25 points shy of that major milestone. In terms of data there’s a preview of Friday’s non-farm jobs report with the ADP figure, expected to rise from 190k to 191k, alongside the final Market services PMI for December, forecast to slide from November’s 54.5 to 52.4.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Financial Trading Blog

Gold Wobbles Ahead of Global PMIs

Read More

Daily Market Update

22.04.26 Wednesday Morning

The S&P 500 closed lower on Tuesday as doubts over the Iran ceasefire weighed on sentiment, while the US dollar...

Read More

Economic Diary

22.04.26

Read More

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.