020 7898 0500A largely positive week for sterling has seen the currency resurgent against both the euro and US dollar following a difficult run in recent weeks. A succession of poor purchasing managers’ index (PMI) data last week had seen sterling slump to six straight days of losses against the US dollar – but with little influential economic data released throughout the start of the week, sterling drifted higher across the board ahead of the latest interest rate decision from the Bank of England (BoE).
There was a significant setback for the British currency on Wednesday as manufacturing and industrial production figures both showed contraction throughout August, as opposed to the modest growth forecast by economists. Yesterday saw the BoE keep rates on hold at a record low of 0.5% for yet another month, committee members voting 8 -1 in favour of this. With inflation expected to pick up at the start of the year, sterling saw some modest strength following this release as investors backed the currency.
Today there is little economic data of note from the UK, investors will likely turn their attention to the US for inflation and consumer sentiment releases.
