Will todays services data boost sterling further?

After a troubling few weeks, sterling showed signs of recovery yesterday as the Purchasing Managers Index (PMI) from the construction industry reported a better-than-expected reading. Growth in the construction industry in July remained at a similar level to the previous month, and was enough to see sterling make gains against the euro, the US dollar and other major currencies.

Today we see the release of PMI data from the services industry. With this sector accounting for two thirds of the UK’s economic output, a positive figure here could see sterling maintain its upwards momentum.