Sterling has struggled over the past week to maintain recent gains made against major currency partners, with purchasing managers’ index (PMI) data coming in below expected levels. It fell throughout the week against both the euro and the dollar, due to PMI data form the manufacturing and construction industries showing a lower rate of growth compared to the previous month. Similarly disappointing PMI data from the services industry prompted the week’s most significant drop for sterling, although the decision by the European Central Bank to hold interest rates at 0.25%, and their refusal to exclude further monetary easing saw sterling recover to a similar level against the euro as the start of the week. With all of this week’s major releases out of the way, labour data from the US today will be the main focus; any surprises could impact sterling strength against the dollar.
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