A poor start to the week for sterling saw it lose ground across the board despite better-than-expected growth in the manufacturing sector in January. With manufacturing growth having been sluggish since August last year, the surprise upturn in production should have boosted sterling. However, with positive Eurozone economic news from Germany and on employment plus the European Central Bank (ECB) reporting that the central bank expects inflation to return to normal by 2017, sterling found itself under pressure as the euro found support across the board. In the second half of the day sterling also fell against the US dollar.
Today sees the release of growth data from the construction industry which is expected to remain steady when compared to December’s results. Additionally, we will see Bank of England (BoE) Governor Mark Carney speaking before the Treasury Select Committee.