Recent optimism over the strength of the UK economy was dealt a small blow yesterday as the purchasing managers’ index (PMI) from the construction industry reported a figure of 62.5. It had been expected to increase to 63 but as any figure above 50 represents expansion, this did not upset markets too much. In fact sterling performed well, maintaining its level against the US dollar, and strengthening against the euro throughout the day. Today sees the release of PMI data from the services industry, which is forecast to show a modest slowing in growth. With the services sector making up the largest part of the UK economy, this is set to have the largest impact of all PMI data on outlook for the UK economy and, by association, the strength of sterling. We also have the meeting of the European Central Bank and the midday announcement could lead to further movement in the euro and sterling exchange rate.
Looking to buy or sell sterling? Contact your trader for the latest rates and updates, as well as for currency-purchasing solutions.