The pound saw strong gains of around 1% against the euro yesterday but has weakened slightly this morning. All eyes are now on PMI data.
Sterling’s recovery appears to have been fuelled by comments made by the European Central Bank around maintaining interest rates, which are currently at an all-time low.
Sterling has also benefitted from strong CBI industrial trends and business optimism data. In the three months to July, manufacturing output grew at the same record pace as in June, with manufacturers predicting an even faster growth in the next three months.
Retail sales rose by 0.5% in June as people enjoyed eating and socialising indoors, particularly during the European Football Championships.
