UK data and downturn in BoE expecations - Scotiabank

Analysts at Scotiabank noted the recent disappointment in UK data.

Key Quotes:

"UK Market manufacturing PMI reflected slower than expected growth in Apr."

"The index dropped to 53.9 in the month against the street’s call for a 54.8 reading (and a downwardly revised 54.9 in mar)."

"Weak data and the recent downturn in expectations for tighter BoE rate policy alongside the ongoing fragility of the UK political backdrop (PM May’s weakened position domestically and her government’s attempts to make a workable Brexit plan around the Irish border issue) are not helpful for the pound and suggest more losses are likely."