It was a pretty dismal end to the week for sterling as it slid against the euro and dollar following a positive start to the year. Disappointing construction PMI data didn’t help matters, but it was really about the sigh of relief investors gave following the positive non farm payrolls reading in the US.
The week kicks off with new care sales for January and we also have the services PMI. It is expected to increase from 54.2 to 54.3, but following the manufacturing and construction PMI readings, it wouldn’t be too much of a surprise if that figure comes in below expectations. We can but hope.
Thursday sees the BoE interest rate decision, while Friday hosts the industrial, manufacturing and construction outputs for December. We will also see the balance of trade report for December.