The pound remained under broad selling pressure against the single currency yesterday, as poor economic fundamentals and a looming interest rate cut took its toll on sterling. Data released early on Tuesday showed the construction industry rose to 34.5 in January after a fall to 29.3 in December. But that was the 11th month running the index has been below 50, the level which marks contraction, confirming the poor state of the UK’s economy at present. Investors are also wary of another interest rate cut tomorrow, with the Caxton FX analysts forecasting a 0.5% cut by the Bank of England to another historic low of 1%, whilst the European Central Bank are expected to keep rates on hold at 2%.
Retail sales figures are released in the eurozone this morning, whilst PMI services data is released in the UK and the eurozone.
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