Could positive economic figures this week help sterling recoup some losses?

Sterling resumed its downward trajectory on Friday, falling against both the euro and US dollar despite US employment data revealing a much lower than expected increase in job openings in the US throughout April. Sterling ended the week at its weakest against both the euro and US dollar – especially compared to the five-month high the British currency had reached against the US dollar on Tuesday.

A quiet start to the week ahead, with little economic data of interest due for release until we see manufacturing production figures on Wednesday. This is expected to show a 0.4% increase and could inject some optimism into the UK manufacturing industry following last week’s disappointing growth data. Thursday sees the release of the Bank of England (BoE)’s quarterly inflation report alongside their regular interest rate decision. BoE Governor Mark Carney will be speaking around these topics, and investors will be eagerly awaiting any insights he may give regarding future monetary policy especially if there is a vote to leave the European Union.

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