Sterling remained stable against the euro yesterday in a quiet day for global trading, as US markets closed for Independence Day. After a brief blip at midday, GBP/USD also returned to where it started the day.
So far this morning, however, there has been rapid movement. GBP/EUR has shifted sharply upwards following revised data for PMI, which showed services and composite PMI at 53.4 and 53.1 respectively.
The big business story of the day yesterday was the first German trade deficit since 1991 as the price of energy imports took its toll.
Nevertheless, the euro maintained its equilibrium against most other major currencies.
In industrial news, train drivers in the UK appear likely to join other railway staff in strike action thus summer, bringing the rail network to an almost complete standstill. There was also a protest against fuel prices which blocked the M4.
In politics, the Labour Party leader Sir Keir Starmer said that should his party win the next general election he would not seek to take the UK back into the EU’s single market or customs union.
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