The pound has weakened against the euro but is trading around a two-week high against the dollar this morning ahead of UK PMI figures.
Markets are predicting a decline in both the UK manufacturing and services industry this month.
The euro received a boost yesterday after President of the European Central Bank Christine Lagarde solidified expectations of a July interest rate hike. This, combined with better-than-expected German PMI data, has continued to support the euro which is trading around monthly highs against the dollar.
The dollar is still being weighed down by positive risk sentiment. All eyes will now be on US PMI figures, new home sales and a speech by Fed Chair Jerome Powell this evening. Markets will be listening for clarity over future interest rate hikes.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
