Sterling was reasonably steady yesterday despite Mays Purchasing Managers’ Index (PMI) for the UK construction industry revealing a lower-than-expected level of growth throughout the sector.
A poor start to the day saw sterling lose ground as growth in the construction industry was reported to have stalled in May as worries on a possible Brexit weighed on this sector. However, the UK currency was able to recover some ground throughout the afternoon as European Central Bank (ECB) President Mario Draghi spoke following their monthly meeting. His statement highlighted the point that the ECB would not hesitate to act should they see any unwanted tightening in fiscal conditions.
Today will see the release of PMI for the UK services industry, which is likely to have the most significant effect of all this week’s data releases from the UK given the importance of this sector to the UK economy. If downbeat, like the PMI for the construction industry, sterling could have a tough day.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.