The pound has recovered slightly today from its 30-month low, but is still in a weak position against the euro and the dollar.
The Liberal Democrats won the Brecon and Radnorshire by-election, meaning that Boris Johnson is left with a majority of just 1 in the House of Commons. He will, therefore, now have to rely heavily on the support of his MPs and the DUP to pass legislation in Parliament.
Sterling continued to weaken yesterday due to a strong dollar, no-deal Brexit fears and the Bank of England’s decision to discuss growth forecasts. At their meeting yesterday, the Bank of England kept interest rates on hold as expected, but cut growth forecasts due to increased Brexit risks.
Construction PMI data will be released this morning, which are forecast to increase for the month of July.
