After reaching multi-year highs against the euro and US dollar, sterling struggled on Monday, losing ground against the majority of its counterparts. After experiencing such a strong performance over the past year, some analysts fear that sterling is overvalued and that it will not be able to sustain its recent gains.
Today sees the release of manufacturing production data; it is hoped that this will follow in the footsteps of recent manufacturing growth figures and exceed expectations. The National Institute of Economic and Social Research (NIESR) UK growth estimate will also be released, which often provides an accurate prediction of UK growth. Better-than-expected data from these releases could see sterling recover much of the ground it lost yesterday.