Yesterday was a good day for sterling which saw it recover all of the previous week’s lost ground against the euro as concern over the Greek debt situation came to the fore once again. Sterling posted significant gains against the single currency throughout Tuesday morning as the Greek Prime Minister warned that Greek debt cannot be repaid without restructuring.
Sterling also found itself improve against the US dollar on Tuesday as UK economic growth over the previous quarter was revised up from previous estimate of 0.5% to show growth of 0.6%. With sterling also seemingly oversold on election fears, sterling had its best single day against the US dollar in over a week.
Today sees the first of the influential Purchasing Managers’ Index (PMI) releases from the UK. These PMI figures provide insight into growth in various industries, with results from the manufacturing sector released today and for the construction sector tomorrow. Both are forecast to show further strong growth.