The pound rebounded and recovered against the euro on Friday and is trading around the same levels this morning. It is weaker against the dollar after falling throughout the course of last week.
Manufacturing PMI released on Friday afternoon showed that growth in the sector fell to a two-year low in June, largely due to inflation pressures and low business optimism.
This week, PMI figures for the services sector will be released, as well as composite figures, which give an overview of both manufacturing and services. Both are expected to remain in expansion territory and show no change from May’s reading.
Several Bank of England officials will speak throughout the course of this week and the markets will be listening closely to any comments surrounding inflation and interest rates.
