Sterling rose to a six-week high yesterday on the latest polling data and better-than-expected construction PMI. The dollar’s weakness also gave the pound a chance to rally. This morning, sterling has reached a seven month high against the euro and the dollar.
A fresh poll showed the Conservative Party widening its lead ahead of the general election next Thursday. This is seen as sterling positive, as it is thought by investors that a Conservative majority will solve the Brexit impasse.
Construction PMI data rose to 45.3 in November 2019 from 44.2 in October and above market expectations of 44.5. This latest reading points to the slowest drop in overall construction output for four months, although the number remains in contraction territory.
The NATO leaders summit continues today, following a reception at Buckingham Palace yesterday celebrating 70 years of NATO.
