After climbing back towards $1.69 yesterday the pound once again suffered from some weaker than forecast UK data this morning. UK manufacturing numbers took the wind out of Sterling's sails after yesterdays positive services sector reading and caused the pound to slip from $1.6870 to a low of $1.6823.
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This mornings manufacturing numbers have added to speculation the UK recovery may be slowing. It had been forecast the manufacturing sector would grow by 0.7% in July but with the actual figure coming in at 0.3% the pound quickly lost the ground it made against the dollar during trading on Tuesday. The pound has now lost over 2% against the dollar in the last month and if the U.S. economy continues to play catch up we could be set for further losses.
Tomorrows data releases.
We could be set for another volatile day in the currency markets tomorrow as there are a number of key data releases. The Bank of England will give us their latest update on monetary policy and interest rates. It is highly unlikely we will see a rate hike but if Mark Carney or any of the MPC members drop any hints it could effect the pounds value. The European Central Bank will also deliver their monthly statement and Mario Draghi's comments usually have some kind of impact.
In the afternoon the States will provide us with the latest unemployment claim numbers and if the figure comes out lower the predicted level of 305k we could see the dollar strengthen.
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