020 7898 0500A better than expected reading for the purchasing managers’ index (PMI) from the manufacturing industry gave sterling a much-needed boost on Monday. Growth here was higher than expected throughout January, which ended a two month run of disappointing data from this sector. This helped sterling push close to a two-week high against the dollar as the UK economy showed signs of picking up after a tough end to 2015 – and this was certainly welcome after the British currency lost ground against the US dollar at the end of last week.
European Central Bank (ECB) President Mario Draghi also reiterated the central bank’s aim to review their monetary policy stance in March, ensuring sterling made slight gains against the euro on Monday as well. However, fears remain that Thursday could see a cautious set of minutes from the latest Bank of England monetary policy meeting which could then impact negatively on sterling.
Today sees the release of PMI data from the construction industry, and this is expected to be in line with the previous month – which could add stability to sterling.
