Sterling is suffering, falling to a seventh straight day of losses against the US dollar on Monday.
Mays Purchasing Managers’ Index (PMI) data from the manufacturing sector released yesterday had a reading of 52.0, missing its predicted level of 52.7. Domestic demand for products remains high, but the failure of the economic recovery to take hold in Europe plus sterling’s strength against the euro, has seen a decline in exports for UK manufacturers. This caused the negative effect on sterling across the board – despite the failure of the Greeks to come to any sort of agreement with their creditors over Friday’s repayment deadline to the International Monetary Fund (IMF).
Today sees the release of PMI data from the construction industry. With the housing market showing signs of recovery over the last few months, there is confidence that we could see a strong reading today, hopefully reversing sterling’s lengthening slump.