- UK PMI Construction hits highest level since September 2007.
- Rising UK interest rates not hurting UK economy, which helps British Pound.
- Trend of strong August PMI data from Europe continues overall.
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EURO-ZONE ECONOMIC CALENDAR
There are no events on the Euro economic calendar for Tuesday, September 03.
See the Euro economic calendar for the week of September 1 to 6.
UK ECONOMIC CALENDAR
The British Pound is a top perfomer today thanks to the strongest PMI Construction reading since September 2007. The August batch of UK PMI data has been nothing short of spectacular the past two days, underscoring what has been a renaissance of sorts of the British economy in mid-2013.
With the Bank of England policy meeting coming up this Thursday, it’s becoming evident that the UK economy can not only handle higher interest rates, it is handling them quite well (unlike in the US, where US yields at two-year highs has already slowed automobile sales and the housing sector).
Accordingly, while Governor Mark Carney wants to keep interest rates low, it is clear that forward guidance simply isn’t as strong as a dovish policy tool as QE – at least in the face of an improving economy. I wouldn’t put it past the British Pound to see price action on Thursday resemble what we’ve seen each of the past two times Governor Carney has spoken (see this and that).
SWISS ECONOMIC CALENDAR
There are no data on the Swiss Franc economic calendar for Tuesday, September 3.
See the Swiss Franc economic calendar for the week of September 1 to 6.
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--- Written by Christopher Vecchio, Currency Analyst
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