The pound fell against the euro this morning after UK government debt yields hit a historic low of -0.3%, with the Bank of England having an explicit objective of keeping these low to make borrowing cheaper for the government.
Also putting pressure on the pound yesterday were further comments by the Bank of England’s Governor, Andrew Bailey, who told Parliament that negative interest rates have not yet been ruled out.
This morning, we will see manufacturing and services PMI, both of which are expected to show a slight increase, in perhaps a more positive sign. However, CBI industrial order data is forecast to come in with a further drop.
