Sterling had a good day yesterday, particularly against the US dollar where it hit new five-plus year highs after the release of mixed U.S. economic data. Expectations for a UK rate hike later on the year also contributed to sterling strength. Sterling also gained against the euro, strengthening back up near to the 1.25 mark against the Euro as Eurozone inflation data continued to disappoint.
Today we have the first of the Purchasing Managers’ Index (PMI) releases for the manufacturing sector, which is forecast at 56.6 (previous month was 57). Although a slight fall it is still indicative of a growing manufacturing sector. Anything higher or lower could potentially cause movement in sterling markets.