A tougher day for sterling saw it lose some of the gains made earlier in the week against both the US dollar and euro. Manufacturing production throughout July was shown to have increased 0.3% – far behind the expected 0.7% growth. With industrial production on the whole also missing its forecast growth level, sterling found itself under pressure across the board. With the US trade balance also showing an unexpected reduction in its deficit, the decline against the dollar was particularly pronounced.
Today we see the announcement of the latest interest rate decision from the Bank of England’s Monetary Policy Committee. With this benchmark figure widely expected to remain at 0.5%, and assuming this happens, the announcement is unlikely to have little effect on sterling.