A largely flat start to the week for sterling saw the currency move very little against its major trading partners. Despite a disappointing construction purchasing managers index (PMI) release for June revealing the first contraction in the industry since May 2013, sterling remained steady and above recent multi-year lows against both the euro and US dollar. Ratings agency Standard & Poor’s also released their latest analysis on the EU referendum vote, and have forecast that the UK will ‘barely escape full fledged recession’ over the coming years. With a mounting body of evidence pointing to economic difficulty for the UK whilst it negotiates its exit from the EU, sterling is set to remain under pressure for the foreseeable future.
Today, services sector PMI will allow investors to see whether performance was as lacklustre as it was for the construction industry over the past month, although the main spotlight will be on Bank of England Governor Mark Carney when he speaks later this morning.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.