Disappointing UK manufacturing production data for November saw sterling fall against all its major trade partners, aside from the US dollar. UK manufacturing production in November fell by 0.7% compared to the previous month which also contrast badly against an expected increase of 0.2%. This is the first time since May that production has fallen compared to the previous month. At one stage sterling had lost nearly a cent against the euro as investors pushed back their bets on when the Bank of England may raise interest rates.
Sterling made gains against the US dollar throughout Tuesday morning, as risk-averse investors looked to secure their profit from the dollar’s recent strong form.
A relatively quiet day lies ahead, with the release of the UK’s latest trade balance the most influential data from the UK today. This is is expected to show a reduction in the deficit from £9.8 billion to £9.5 billion.