Sterling is still waiting for some direction as it holds close to multi-year highs against a range of different currencies. Yesterday it had a mixed day, seeing movements in both directions which mostly cancelled each other out by the end of the day. Initial gains were seen as the purchasing managers’ index (PMI) from the construction sector came in a little ahead of expectations, giving the currency some early buoyancy. However, these levels dropped off later in the day, as the currency returned to near its opening marks.
Today the final PMI figure is due for release, this time from the services sector, which is once again the only major data of note. This is a very significant announcement as the services sector dominates the UK economy and as such, this will be the major driving factor during the day for sterling movement. The figures will be announced at 9.30am. On Thursday’s we have the announcement following the Bank of England (BoE) meeting, during which it will decide whether or not to raise interest rates, and the announcement will be very closely watched by the markets to see what further guidance the BoE is willing to give as to when interest rates will be increased.
Thinking of buying or selling sterling ahead of Thursday’s BoE meeting? Get in touch with your trader now for the latest rates, or for currency-buying strategies that can let you reserve a favourable currency exchange rate in advance.