The pound experienced a day of volatility yesterday. After weakening in the morning following the vote of confidence in Boris Johnson, it then strengthened against the euro and the dollar in the afternoon.
Sterling tends to dislike political unrest, which is why it weakened in the morning. It then made a surprise recovery in the afternoon. The pound has levelled off this morning and is still strong against the euro and the dollar.
PMI data released yesterday showed that the services sector grew at its slowest pace since February 2021. Data also showed that the manufacturing sector grew at its slowest pace in 15 months due to a slowdown in growth of business activity and new orders.
