Sterling slipped further against a resurgent euro on Tuesday, with a smaller-than-expected trade deficit unable to spark any sterling strength throughout the day. With little significant economic data released from around the globe, sterling resumed its negative trend against its major trade partners throughout Tuesday morning. This saw sterling fall to a fresh 13-month low against the euro, with the single currency pushing higher across the board. Despite struggling initially against the US dollar, sterling recovered strongly in the afternoon to recover many of the losses suffered on Monday. This came in spite of an increase in US job openings, as general euro strength saw the US dollar punished.
Today sees the release of UK manufacturing production figures for January. With such negative sentiment surrounding the UK economic outlook, a negative reading could compound recent sterling weakness.