020 7898 0500Sterling pushed slightly higher against the US dollar yesterday despite mixed manufacturing and trade data. Manufacturing production flatlined for the month of June which, while expected, is still not great, especially considering the previous month showed a decline. On a more positive note, industrial production rose by 0.5% thanks to a resurgence in mining and quarrying. Despite the position of sterling, the trade balance deficit grew by more than expected.
According to the National Institute of Economic and Social Research, UK growth is losing momentum. They stated that UK growth grew by only 0.2% in the last three months and pointed to the downturn in the service sector as the consumer is ‘weighed down by weak wage growth and investment spending held back by Brexit-related uncertainty.’
It is a fairly quiet day tomorrow, but with escalating tension between the US and North Korea there is a chance of some short covering.
