Sterling struggles as key data disappoints – BOE meeting in focus today.

A tough start to the day on Wednesday saw sterling struggle significantly following the release of disappointing industrial production figures, before it recovered strongly against the euro towards the end of the day.

The manufacturing production figures were expected to buck the recent trend of disappointing growth in UK industry with a 0.2% increase in production, but news that this had fallen as much as 0.8% throughout August ensured that sterling lost as much as a cent against both the euro and US dollar during early trading.

Sterling was able to recover throughout the day as confidence returned to the market ahead of today’s interest rate decision and accompanying meeting minutes from the Bank of England. This release looks set to be the most important of the week for the UK, and will give insight into how the central bank is reacting to the recent global instability.