A mixed time for sterling this week has seen it move slightly higher against the US dollar, but fall close to pre-election levels against a recovering euro.
UK industry growth data was released this week, as well as the Purchasing Managers’ Index (PMI) figures from the manufacturing, construction, and services industries. Despite the construction sector showing solid growth, disappointing data from both the manufacturing and services sectors contributed to an underwhelming week for sterling plus highlighting the negative effect the strength of sterling was having on UK exports. However, slowing economic sentiment from American allowed the pound to rise higher against the US dollar.
News that Greece was closer than ever to meeting today’s repayment deadline, or at least negotiate new terms, meant that sterling has fallen sharply against the single currency. This renewed optimism around the Greek debt situation, could mean that we see sterling fall further against the euro over the coming weeks.
Today rounds off with little influential data from the UK, as investors are firmly focused on news from Europe to inform their decisions. Aside from this, we also have the release of non-farm employment figures from the US – expected to cause significant movement in the markets.