Struggle for sterling following poor manufacturing data

Sterling struggled again on Tuesday following a set of poor economic data releases from the UK. An unexpected contraction in housing inflation throughout November saw sterling suffer as markets opened in London, with last week’s poor construction growth data suggesting the housing sector is under pressure. This was closely followed by manufacturing production figures from the previous month which, after posting a 2015 high in October, shrank by 0.4% throughout November which compound sterling’s woes. This left the UK currency at the lowest levels in over a month against the euro, while falling close to its lowest level in eight-months versus the US dollar.

A quiet day lies ahead, with no major economic data releases expected from the UK. Investors will instead be positioning themselves ahead of tomorrow’s interest rate decision from the Bank of England as we have another Super Thursday.