Sterling is finding it very difficult to get any sustainable upward momentum. Monday’s manufacturing Purchasing Manager’s Index (PMI) surprised to the upside, yesterday’s construction PMI disappointed on the downside. We had seen sterling gaining a bit of ground against the euro and the US dollar but the last 12 hours has seen most of Monday and Tuesday’s gains given back.
The UK does have a busy schedule of data releases and information flows for the rest of the week, which may give sterling a boost. Today we have the key service sector PMI data release which is expected to be slightly down from the previous month but not by much. Given the significance of the service sector to the UK economy this release will be closely watched. Later in the week we have further manufacturing data as well as the Official Interest Rate Decision made by the Bank of England.