Wednesday proved another good day for the pound as it we saw a boost in numbers for Services PMI at 54.9 instead of the 54.6 predicted. With other positive PMI releases seen this week as well, there has been an overall growth seen for the UK’s economy – the outlook is now that we will see decent growth leading into 2016. We saw the pound exceed 1.4100 yesterday versus the euro, while against the dollar we saw things sit at around 1.5400.

There is a glut of data releases today as we’ll see the BoE release its inflation report and breakdowns of interest rates and policies. There should be some indication about what is to occur in the New Year, too, and when/where an interest rate increase comes into play.

As we’ve seen throughout the week, the euro hasn’t looked at its healthiest with losses against the pound by 0.75%. This is despite there being positive data from Europe (good Spanish and French PMI) this past week – but sentiment seems to reign which is having a negative impact.

Poor German factory orders have come in already this morning and have had a negative impact. We’ll also see economic forecasts from the EU today, as well as monthly retail sales. Mario Draghi, ECB head honcho, will also be speaking this morning which might cast some light on what is due to transpire with their asset purchasing programme.

In the US, ADP employment data came in positive yesterday at 182K as opposed to 183K expected. Then tomorrow we’ll see the big non-farm payrolls release which should bring something solid to the table. ADP trade numbers were also released for September as positive. In a speech last night, Janet Yellen, Fed Chair, said that with the US economy performing well, it could be “appropriate” to raise interest rates next month, but of course that is not a concrete decision. So, tomorrow it is that all eyes transfix on non-farms data.

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