The pound is weak this morning against both the euro and the dollar. This is partly because of ongoing concerns about a no-deal Brexit, as well as poor economic data and a gloomy speech from the Bank of England Governor, Mark Carney.
Sterling weakened against the dollar and the euro yesterday due to poor construction data. Construction PMI was 43.1 in June, falling from 48.6 and positioning itself firmly in contraction territory.
The pound then extended its losses due to comments from Governor of the Bank of England, Mark Carney, who hinted at a possible interest rate cut. He said that trade tensions would “shipwreck the global economy” and that central banks may need to respond “as insurance.”
All eyes now turn to Services PMI data, which is expected to remain the same at 51.00. If the figure comes in lower, we could see the pound react negatively.
