The pound scaled €1.20 again yesterday, extending its recovery from last week. Problems in the Ukraine did not help the pound against other currencies, however, and sterling fell by around 0.3% against the US dollar.
There was a positive reaction to Markit PMI of 60.8 for services, 57.3 for manufacturing and 60.2 for composite, against a market expectation of 55, 57.6 and 55.3 respectively.
Today we have already seen Public Sector Net Borrowing at lower than market expectations of £2.9bn for January. Later this morning we will have CBI Industrial Trends and also hear from Dave Ramsden from the Bank of England’s Monetary Policy Committee.
