Sterling reversed a week of losses against the euro on Wednesday as it found support above the recent 13-month low reached against the single currency.
This was despite manufacturing production falling by 0.2% in December, extending a three-month run of contraction within the industry. With economist expecting to see production remain, sterling risked slipping across the board following the release of this data. However, gains were made throughout the morning against the euro and US dollar with Tuesday’s weakness against the euro largely driven by events in the US, and proving to be temporary.
Today sees no major economic data released from the UK. Instead, markets will be watching the US where Federal Reserve Chair Janet Yellen is due to speak for the second successive day.