After starting the day in a weaker position, sterling strengthened in the afternoon yesterday, recovering from a two and a half low against the dollar. After a downturn last week due to trade talk tensions between the UK and EU, the pound appeared to rebound yesterday. However, it’s slightly softer this morning.
Today is a busy day of data for the UK, so we could see the pound move again. This morning, GDP and Balance of Trade figures will be released, as well as Industrial and Manufacturing production data. GDP is expected to show a slight drop year-on-year and quarter-on-quarter.
Whilst data has improved since the December general election, it’s possible that trade talk uncertainty could cloud the economic outlook.
