The pound reached a two-week high against the dollar and fell against the euro yesterday. Sterling is still benefitting from the Jackson Hole Symposium last week when the Federal Reserve was vague about when it would cut its asset purchases. This sent the dollar lower against most currencies.
PMI data is due for the UK later today and on Friday, and any surprise readings could impact the pound. The data is expected to show that the services and manufacturing industries are continuing to grow, but at a slower pace.
The COVID-19 situation in the UK could also continue to be integral to sterling’s movements. The latest government statistics show the number of Covid patients in hospital has passed 7,000 for the first time since 15 March.
