Manufacturing production figures met expectations and sterling gained ground against the euro but struggled against the US dollar. Manufacturing production figures from April showed growth of 0.4% throughout the month, providing further evidence that economic recovery in the UK is still on strong ground. This positive data saw sterling improve sharply against the euro, pushing back towards 16-month highs, sustaining its recent promising performances against the single currency. However against the US dollar, sterling slackened off throughout the afternoon, finishing the day down against the US dollar.
Today sees the release of unemployment data from the UK, which is expected to fall to 6.7%, the lowest rate in more than five years. Expect this positive data to influence sterling’s market position should it hit this expectation.