Sterling has regained around half of last week’s losses against both the US dollar and euro, despite mixed economic data yesterday and concerns about supply chains and labour shortages.
The main prompt for sterling’s recovery to above €1.17 at the interbank rate this morning has been the return of investor confidence, also reflected in a strengthening stock market.
On the data front, Markit PMI data was disappointing for UK services but better than expected for manufacturing. There is little else on the economic front to move the market today but as yesterday showed, that’s not a guarantee that sterling won’t react to the unexpected.
In the business news, Lord Ian Botham has been appointed as one of 10 new trade envoys for the UK. The former cricketer will be trade envoy to Australia in an unpaid role.
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