Sterling slipped marginally against almost all major currencies except the US dollar yesterday, albeit at a considerably slower pace than on Wednesday and not far enough to wipe out entirely the 0.5% increase on EUR on Monday and Tuesday.
There has been little for the markets to be worried about in a quiet week for data, but car production figures for July showed a near 40% drop since last year and the lowest since 1956, due to staff and parts shortages.
With no data releases today or on Bank Holiday Monday, movements in GBP could be governed by international factors, including the words of US policymakers at the Jackson Hole summit and (even) more worrying affects from the Delta variant on Covid-19 numbers.
Over a weekend where resurgent Covid numbers and harrowing pictures from Afghanistan are likely to be the backdrop, safe-haven currencies like the US dollar, euro, yen and Swiss franc could benefit at GBP’s expense.
