Sterling has had a strong week, hitting fresh four-and-a-half year highs against the US dollar over successive days despite there being little supporting economic data out of the UK. Early in the week and despite just missing economic growth figures of 0.9%, sterling appreciated against both the euro and US dollar amidst continuing growth in the UK economy. Wednesday saw sterling appreciate further amid influence from elsewhere. Poor growth data from the US saw good gains against the dollar. Thursday saw sterling make gains as strong purchasing managers’ index (PMI) data from the UK drove performance against the euro, alongside revisiting the highest level against the US dollar in four-and-a-half years.
Today we see the release of PMI data from the construction industry which is expected to show continued expansion, while any weakness in unemployment data from the US could see sterling benefit further against the US dollar.
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