Sterling recovered some ground this week as better-than-expected economic data from the UK led to renewed investor confidence. A quiet start to the week saw little movement for sterling, despite Bank of England (BoE) voting member Weale suggesting that the central bank may not in fact cut interest rates in August. Inflation of 0.5% throughout June against a forecast of 0.4% brought positive relief to sterling, allowing it to strengthen across the board. Wednesday’s jobs report extended this rally, showing unemployment at a 10-year low of 4.9% whilst average earnings grew 2.3% throughout the previous quarter. Disappointing retail sales data revealed a contraction of 0.9% throughout June, but still could not dampen the recovery seen by sterling.
Today brings about two sets of purchasing managers’ index (PMI) data from the UK. Growth data from the services industry will be the most keenly awaited figure, with markets keen to see the effect that the EU referendum has had on the UKs largest industry.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.