020 7898 0500Sterling mounted a rally on Tuesday, following a better-than-expected construction purchasing managers’ (PMI) index figure. Following on from last week’s disappointing consumer sentiment and retail sales data and Mondays poor manufacturing PMI figure, markets were braced for another disappointment in this figure yesterday. However, the construction industry showed surprising resilience, contracting by a much smaller margin than forecast throughout July. Attention still remains fixed on the Bank of England (BoE), who are expected to cut interest rates tomorrow in an effort to stave off the negative impact of the Brexit vote.
Today sees the release of services PMI data, which will give investors the clearest sign yet of whether the BoE are likely to ease monetary policy further this week. Should this figure disappoint to the same degree as the interim data released earlier in the month, we can expect to see further weakness for sterling.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
