A mixed end to the week for sterling saw it fall to a fresh seven-year low against the US dollar whilst showing a second straight day of gains versus the euro. This week we may have less focus on the EU referendum and more on the steady stream of key UK economic data being released.
This is an important week for sterling, with the release of the monthly purchasing managers’ index (PMI) figures from a number of industries. Manufacturing data will be the first of these when it is released on Tuesday. With steady growth seen since 2013, there is no expectation of any surprise in this figure. Data from the construction industry has shown strong growth over the last year, although there have been some recent surprises to the downside. Should we see the same on Wednesday, sterling could lose ground against its major trade partners. Thursday’s services PMI figures will be the most influential and are expected to show modest growth throughout the sector. Aside from this, markets will continue to react to the upcoming EU referendum, with sterling remaining sensitive to news and influences on the potential outcome.