020 7898 0500Sterling fell sharply across the board yesterday, falling to an 18 month low against the euro and giving back many of the recent US dollar gains.
The March Purchasing Managers’ Index (PMI) for the services sector was released in the morning. The reading was largely in line with the forecast level but fears over a British exit from the European Union have been compounded over the past few days and therefore “in line with forecast” is unlikely to be good enough to support sterling effectively. Coupled with a wider risk aversion throughout markets, which has seen numerous currencies weaken against the US dollar, sterling pushed down through a number of key support levels and reached a one-week low against the dollar.
A relatively quiet day lies ahead for the UK, with no significant data set to be released. Instead, investors will look towards the US where we have the release of the minutes from the latest Federal Reserve meeting later today.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
