Sterling was boosted last week, with GBP/USD rallying close to six-month highs. Markets predict that the exchange rate could rise further over the course of the week providing incoming economic data remains gracious enough to keep the Dollar on its back foot.
This week, the latest S&P Global/CIPS Manufacturing PMI Flash reading for January will be the big one to watch. UK manufacturing PMI was revised slightly higher to 45.3 in December last year, revealing the lowest reading for 31 months, and one of the weakest since mid-2009. On Tuesday, markets expect the reading to edge up slightly to 46.
