The latest data on the manufacturing sector has come as a clear disappointment and leaves the excuse that the poor performance seen in March was due to the weather looking flimsy at best. May rate hike odds have completed a stunning u-turn in the past couple of weeks and it now appears highly unlikely we get an increase at next week’s meeting.
Unsurprisingly the pound has reacted negatively to the release, falling below the 1.37 handle to trade at its lowest level since mid-January against the US dollar. Traders will now have a keen eye on tomorrow’s construction release, with the sector being one of the major laggards on growth in the first quarter before Thursday’s services number.