020 7898 0500Yesterday saw sterling gain against the euro but lose ground against the US dollar.
A quiet start to the day saw sterling open at a similar level to its position on Monday. With little fundamental data released across the board, the UK currency traded within a narrow range throughout the morning. Construction Purchasing Managers’ Index (PMI) data missed the expected level, but still showed strong growth. Sterling was then affected, late in the day, by the news that US factory orders had beaten forecast, increasing expectations for a US interest rate rise, thereby boosting the US dollar.
Today’s release of the Services PMI could have a significant effect on the market, with levels being forecast to drop below those seen last month. However, this effect could be muted should we still see strong growth in this sector.
