An important day for sterling today as the January Purchasing Managers Index (PMI) for the key services sector is released. After positive Construction PMI figures were released yesterday, the best since July 2013, expectations are high and given services make up around 70% of the UK economy we could see some movement in sterling if these expectations are either exceed or not met.
Sterling’s movement yesterday saw it reverse its losses against the US dollar while falling further from recent seven-year highs against the euro. Evidence released yesterday morning pointed towards significant growth in the construction industry throughout January. This saw sterling perform strongly throughout morning trading, as investors hedged their bets on equally impressive services growth data being released today. Despite this strong start, sterling struggled throughout the afternoon, falling sharply against the euro as investors saw positive signs from the Eurozone around the Greek debt crisis.