Sterling has come under pressure this week, losing a little bit of ground against the euro and the US dollar, but, more than holding its own against the commodity backed currencies, following a succession of data releases that pointed to poor UK economic growth. throughout the UK economy.
Monday’s bank holiday saw limited movement for sterling as investors awaited the release of purchasing managers’ index (PMI) data later in the week, pushing the British currency to the highest levels of 2016 against the US dollar early on Tuesday morning. However, sterling weakened following the release of slow PMI figures from the manufacturing industry, which showed that the manufacturing sector had contracted for the first time in three years in April. As a result of this, sterling fell sharply across the board to the lowest levels in a week against both the euro and US dollar. Further disappointing PMI data from the construction and services industries saw sterling weaken further in the middle of the week before rallying Thursday afternoon.
A quiet day lies ahead, with employment data from the US likely to provide the only point of interest for investors, although investor sentiment regarding June’s EU referendum is still likely to play a part in market movements.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.