A largely positive day for sterling saw it post marginal gains against the US dollar while holding close to recent seven-year highs against the euro. Construction data released on Tuesday followed the trend of Mondays manufacturing data, posting better than expected gains throughout January. With a positive outcome being a figure above 50.0, the reading of 60.1 points to continued robust growth within the construction industry, as “evidenced” by the number of cranes I see both on my way to and while at work. With little other data released throughout the day, sterling was able to recover some ground against the US dollar, with investors wary over non-farm employment figures to be released at the end of the week.
Today we will see results of growth in the key UK services sector throughout January. With strong data for both the manufacturing and services industries, a better-than-expected reading could see sterling strengthen further.