Sterling continued its climb against all major trading partners and in particular the US dollar hitting six-year highs. Performance against the euro pushed it back towards heights last seen in late 2012/early 2013 as disappointing data from the Eurozone continues to take its toll. The key driver though were the positive UK manufacturing figures for June which once again highlighted the current strength of the UK economy. Demand for the pound remains high as the state of the UK economy contrasts so positively to those of the Eurozone and the US and despite recent cautionary comments from members of the Monetary Policy Committee.
Today sees the release of Purchasing Manager Indices for the construction industry, while we look towards Thursday’s influential services industry data. If these surprise to the upside we are likely to see further sterling strength.