A positive day for sterling saw it rally strongly against both the euro and US dollar throughout the afternoon amid speculation that Bank of England (BoE) Governor Mark Carney would provide some guidance on the BoE’s monetary policy in his Mansion House speech.
A tough start to the day saw confirmation that manufacturing output decreased by 0.4% throughout April, against an expected 0.1% increase. This data was largely ignored, however, with a better-than-expected 0.4% increase in industrial production prompting sterling to rise sharply against both the euro and US dollar. With an independent estimate of UK economic growth also coming out above the forecast level, sterling sustained this strong performance throughout the day.
There is little important data set to be released from the UK today, with attention instead turning to the US, where unemployment data for the past week will be released alongside April’s retail sales figures.