Friday highlighted how quickly exchange rates can move. A positive start to the day saw sterling rise to its highest level against the euro in over 6 years. However, a slowdown in UK manufacturing growth below the forecast level saw sterling lose value across the board, dropping to a 16-month low against the US dollar and losing over a cent against the euro.
Investors hoping for a sterling recovery will look to a number of key data releases from the UK this week. Purchasing Managers’ Index data from the construction and services industries will provide early-week interest, whilst manufacturing production is forecast to pick up strongly compared to the previous month.
The Bank of England’s latest interest rate decision is likely to remain at 0.5%, and greater attention will be paid to the release of minutes from this meeting later in the month.
With a raft of important releases also set to come from both the Eurozone and the US, it looks to be a busy start to 2015. Now’s the time to call your trader and find out the latest rates and market information.