The pound strengthened against the euro early yesterday, coming close to breaching last week’s 12-week high before slipping back by around half a cent by this morning. The trend was similar against the US dollar.
Data from the UK was mixed yesterday, but the final reading for S&P Manufacturing PMI in the UK at 52.1 was well above that of most of the UK’s European rivals, which all showed a contraction to below 50.
With the BoE deciding where to move on interest rates this week, there could well be market movement.
In the meantime, the markets could be swayed by the promises from rival Tory leadership candidates (including hints from Liz Truss that she would like to take more control of interest rates from the independent Bank of England).
