After a muted Monday, sterling endured a rather turbulent Tuesday. Manufacturing production figures came out at -0.3%, significantly short of the expected 0%. The Goods Trade Balance also came out a long way short of its expected figure of-9.6 billion, at -12.4billion. Shortcomings on both data releases meant that sterling slipped against the euro and US dollar before gaining back some strength by the end of the day’s trading.
On balance, Tuesday was a signal that domestic data is once again starting to have an effect on sterling now that the dust has momentarily settled on the outcome of Brexit. Once this topic rears its head again, however, expect to see such data fade into the background once again and political rhetoric will dictate market direction as before.
Wednesday sees no significant data due for release in the UK. The movement of the UK currency’s main trading partners – particularly the euro and US dollar – will be important to watch as they may well make gains on sterling on the back of positive date seen in the Eurozone and the US respectively.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.