For the first time in 2 months, the British pound hit 2.0 against the US dollar. Unfortunately the currency pair failed to hold above this level as weaker economic pushed the currency lower.
Manufacturing sector PMI came out much weaker than expected while Nationwide House Prices fell by the fastest pace in 16 years. Governor Mervyn King predicts further downside risks in the housing markets which may be part of the reason why he has been reluctant to raise interest rates. Looking ahead, PMI Construction is largely expected to decline, as the sagging housing market coupled with tight lending conditions continue to be hurdles for construction companies. Other than service sector PMI on Thursday, there is no major UK data on the calendar this week.