Sterling has had a difficult week ending the week down against most other currencies after negative data outweighed positive. The three purchasing managers’ index (PMI) figures starting with manufacturing, which came in behind expectations, with losses compounded by pessimism over the dwindling prospect of interest rate hikes in the near future. The construction sector figure helped the currency bounce back a bit by beating expectations before the final PMI figure from the service sector (the largest sector) also missed its expected level. Yesterday’s meeting from the Bank of England (BoE) heralded little impact on markets, as it maintained the current interest rate and quantitative easing levels while providing no further future guidance, giving investors nothing to go on. As such, markets were muted, although events from the European Central Bank saw sterling fall at one stage to its weakest in 2014 against the euro.
Today sees a few data releases of interest, with the monthly manufacturing production figure from the UK being the most significant. This comes along with trade balance figures, while later in the afternoon we see the growth estimate from the National Institute of Economic and Social Research to finish things off.
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