Following a strong performance in previous weeks, sterling has struggled this week as the euro and US dollar both recovered lost ground. Monday saw little market movement due to a bank holiday in the UK which reduced liquidity in sterling markets; however, Tuesday saw sterling struggle as both the euro and US dollar made gains. US strength was driven by economic data which pointed towards increased growth in the manufacturing industry, while euro markets continued to be influenced by speculation regarding next week’s interest rate decision by the European Central Bank (ECB). With the only data from the UK missing forecast levels throughout the rest of the week, sterling continued to slide, only rallying slightly on Thursday against the US dollar following a weaker-than-expected growth figure for the first quarter in the US.
Today sees no major economic data released from the UK or elsewhere, with investors positioning themselves for next week’s interest rate decisions from the UK and Eurozone.
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