Last week ended terribly for sterling as we saw it weaken greatly against both the euro and the US dollar. It reached the lowest level against the Euro since late February, following less-than-encouraging manufacturing data in the morning. Difficult to see how this week will be much better for sterling with the uncertainty surrounding Thursdays General Election hanging over it.
On Wednesday we have the release of the Purchasing Managers’ Index (PMI) for the UK Services sector, the most significant part of the UK economy, with early forecasts expecting the figure to be slightly lower than last month’s but still in expansion territory. It does seem pivotal that the data supports sterling given the aforementioned General Election on Thursday. On Friday we have the release of UK trade figures for March which are expected to show a continued deficit around the £10 billion level which is in stark contrast to the £20 billion surplus expected from Germany