Sterling initially struggled across the board yesterday as the Purchasing Managers’ Index (PMI) data from the construction sector revealed a lower rate of expansion than expected in November. The construction industry has performed far better than expected throughout 2014 and it was expected to have continued throughout November following promising manufacturing growth data on Monday. However, sterling fell as building activity expanded at the slowest rate in more than a year.
Sterling soon recovered against most of its trade partners however as sentiment around the UK economy is still largely positive. Despite this, performance against the US dollar was disappointing, with a buoyant dollar erasing most of sterling’s gains seen on Monday.
A data heavy day today sees the release of the key services PMI data which could see sterling shift significantly should this figure stray from predicted levels. Additionally, we will have the Chancellors Autumn Forecast Statement this afternoon, giving insight into the Government’s budget for the coming year.