Sterling struggled to hold on to its multi-year highs this week in the face of disappointing economic data out of the UK. Manufacturing production figures released this week were expected to reflect the recent growth seen in the industry — however, these showed a significant contraction in factory output prompting sterling to fall sharply across the board. Moreover, industrial production as a whole contracted by 0.7% whilst housing inflation data from Halifax showed a slight reduction in house prices June causing further sterling weakness. It wasn’t all bad news for the UK as the National Institute of Economic and Social Research released some robust growth estimates for the last quarter.
There is little economic data released today, with minor data from the construction industry being the only release of note.
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