020 7898 0500Sterling ended the week with further losses, falling to a four-month low against the US dollar as Federal Reserve chair Janet Yellen shared her belief that US interest rates would rise before the end of the year. Sterling also struggled against the euro falling close to levels last seen in the first few months of this year. In the space of a few weeks sterling has lost around 6% against both the euro and the US dollar, not a good sign.
A quiet start to the week could result in further trouble for sterling. With no significant data expected from the UK until Wednesday, sterling movement is likely to be influenced by events elsewhere. The release of the latest current account deficit, along with economic growth over the previous quarter, could result in some movement, as investors get a clearer view of the current economic situation in the UK. Thursday sees the release of the first Purchasing Managers’ Index (PMI) data of the month. This comes from the manufacturing industry, and will be followed by construction data on Friday. After disappointing results last month, investors will hope to see a turnaround in both of these figures before the more influential services sector data is released next Monday.
