The following data was published:
(Time / country / index / period / previous value / forecast)
Switzerland 7:15 Retail sales, y / y in July -3.9% -2.2%
Switzerland 7:30 PMI in the manufacturing sector in August 50.1 50.5 51
France 7:50 PMI in the manufacturing sector (the final data) August 48.6 48.5 48.3
7:55 Germany Index of business activity in the manufacturing sector (the final data) August 53.8 53.6 53.6
8:00 Eurozone PMI in the manufacturing sector (the final data) August 52 51.8 51.7
8:30 UK PMI index of manufacturing activity in August with 48.3 Revised 48.2 49.0 53.3
The British pound rose sharply on evidence of improving manufacturing activity (PMI) in August. More positive data tempered concerns about the negative consequences of Brexit.
Manufacturing activity in the UK unexpectedly jumped in August, showed Markit data.
Purchasing managers index of manufacturing rose to 53.3 from 41-month low of 48.3, published in July, after the EU referendum. The index was expected to rise to 49.
A reading above 50 indicates expansion in the sector. The index indicates that the sector expanded the most in ten months in August.
The monthly increase in the index was the highest in over a 25-years of the survey.
“The companys said that the work that had been postponed in July, have now been restarted since manufacturers and their customers began to regain a sense of returning to work, as usual,” said Rob Dobson, senior economist at IHS Markit.
The euro weakened against the US dollar after the index of business activity in the manufacturing sector in the euro area, but then regained some lost ground.
In the euro zone manufacturing sector expanded at the slowest pace in three months in August, revealed Markit data.
Purchasing Managers’ Index fell to 51.7 in August from 52 in July. A preliminary assessment was 51.8.
The data showed that the rate of expansion slowed for production, new orders and new export orders, which led to a weaker rate of job creation.
Research indicates that industrial production is growing at a constant, though not impressive annual rate of just under 2 percent, said Chris Williamson, chief economist at IHS Markit.
Germany and the Netherlands recorded the strongest rate of expansion. At the same time, the French continued to decline in August.
Production recovery in Germany, which began in December 2014, continued in August. The final manufacturing PMI in Germany from Markit / BME fell to 53.6 in August, according to a preliminary estimate, from 53.8 in July.
French manufacturing PMI reached 48.3 in August, compared to 48.6 in July. The initial estimate was 48.5. The last reading was below the neutral 50.0 threshold of the sixth month in a row.
The Swiss franc fell sharply against the US dollar on retail sales, but then rose after the release of the index of business activity in the manufacturing sector
Retail sales in Switzerland fell in July compared with the same period last year. Retail sales fell in nominal terms by 2.6% compared to July 2015 and decreased by 2.2% in real terms.
EUR / USD: during the European session, the pair fell to $ 1.1125 and retreated
GBP / USD: during the European session, the pair rose to $ 1.3265
USD / JPY: during the European session, the pair rose to Y103.71
The post European session review: the pound rose sharply on manufacturing PMI data appeared first on forex-analytics.press.