With very little market movement on Monday due to a bank holiday in the UK, the release of the purchasing managers’ index (PMI) for the services industry saw sterling appreciate sharply against both the euro and US dollar. PMI data clocked in at 58.7, demonstrating that the strong growth in activity seen recently was sustained throughout April. With the US trade balance coming out at around to forecast levels and little other important economic data released, sterling improved throughout the day, hitting its highest levels against the euro since early March and setting fresh four-and-a-half year highs against the dollar.
Today sees no major economic data releases, and testimony from Federal Reserve Chair Janet Yellen is likely to be the only event from the US which could cause significant moves for the US dollar.
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