Sterling strengthened marginally yesterday, by around a third of a cent against the euro but rather more than a cent against the US dollar.
The new low in Covid cases may have been a factor, but the lack of Brexit news – which has mainly been negative recently – was probably more important.
Also helping was the rising stock market, which tends to carry sterling with it.
Today we have the Purchase Managers’ Index (PMI) for services and manufacturing in the UK, Germany and Eurozone. In a normal month anything below 50 is seen as negative, but the expectation is for around 46 for manufacturing and 40 for services, a rise from 40.7 and 29.0 respectively last month.
