The pound continued last week’s gains against the dollar and losses against the euro in Monday’s session, hitting another new lowest point since last May.
This morning we have had a reading for labour productivity, showing 0.2% fall in the third quarter of 2023.
Coming up, while news will be dominated by the Autumn Statement, Thursday’s S&P manufacturing PMI also has the power to divert currency watchers. The index is forecast to remain negative (i.e. sub-50) for the eighth consecutive month.
Given sterling’s recent weakness against its European competitor, any further decline in sentiment could lead to more euro gains. On the other side of that coin, a surprise to the upside may lead to some short-term success for sterling as analysts continue to take a dim view of the UK economy.
GBP/EUR: the past year
