Sterling makes inroads into losses vs euro

Sterling rebounded yesterday following improved construction industry data, closing the day up 0.35% at 1.1398.

• Sterling rose yesterday, clawing back from recent losses and hitting a week-high of 1.1427 against the euro as investors covered short positions in the pound following its broad slide in past weeks.
  
• Additionally, a positive UK construction industry figure gave relief from a string of poor data emerging from the economy and helped the pound move further away from recent 10-week lows.
  
• The reading of 47.7 for August was improved from last month but still below the predicted level of 48.1.
  
• In trading this morning, the pound has continued to make marginal gains against the single currency, consolidating its position above the 1.14 mark.
  
• In the UK today data is released at 9:30BST on the services industry which is forecast to continue expanding for the fourth consecutive month, whilst in the eurozone, the ECB is releasing their interest rate decision at 12:45BST.