Sterling slipped slightly yesterday against the euro and US dollar, dropping below both €1.17 and $1.39, but largely held onto last week’s gains against the US dollar.
The drop might have been bigger had there not been more good news on Covid-19, with new cases continuing to fall, quarantine cancelled for travellers from more countries and plans for an “amber watchlist” cancelled. The NHS test and trace tracker was tweaked to make it less sensitive in an effort to prevent so many people having to self-isolate.
The big news for the UK this week is the interest rate decision on Thursday, and this time there will additionally be the quarterly Monetary Policy Report, a clearer indication on the Bank’s views on interest rates going forward.
The UK’s manufacturing sector grew strongly last month according to Markit’s PMI, still rising at 60.4 – well ahead of the 50 mark that shows growth – but falling from last month’s record-breaking 65.6. There were warnings however, of supply chain problems and inflation in the system.
UK PMI was below some of our counterparts, with Germany recording 65.9, the eurozone as a whole 62.8 and the USA 63.4.
The stock market was more positive, with the FTSE 250 hitting a new record high.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
