Yesterday was a better day overall for sterling as it saw positive movement, by the end of the day, across the board despite falling to a fresh seven-year low against the US dollar throughout morning trading.
With limited economic data released from around the globe, sterling fell throughout morning trading as a fresh poll put the campaign to leave the EU ahead by 52% to 48%. Although ‘Brexit’ sentiment drove much of the market movement throughout Monday, pushing sterling to a fresh seven-year low against the US dollar, sterling was able to recover somewhat towards the end of the day as the euro came under selling pressure across the board. This negative euro movement also impacted sterling against the US dollar, pushing the pound away from multi-year lows, to finish the day in a strong position.
Today sees the release of Purchasing Managers’ Index (PMI) data from the manufacturing industry, which is expected to show a modest level of growth throughout January with exports benefitting from the weaker pound.