Good data buoys sterling

Sterling performed strongly yesterday, gaining sharply on both the euro and the US dollar. This was thanks largely to strong services Purchasing Manager Indices (PMI) data, showing the sector had expanded in July greater than expected. These results added to signs that the economic recovery is gathering pace, and was duly reflected in the strength of the currency. This being said, the market will remain little tentative before hearing the inflation statement from Governor of the Bank of England this coming Wednesday, where he will outline plans for forward guidance on interest rates. Before this, today see’s the release of UK monthly manufacturing production data, and as such could see further movement for the currency. Call your trader today for the latest prices on sterling during an important week for it.