Sterling fell more than a percent on Wednesday, reversing gains made earlier this week. Despite manufacturing PMI being released above forecast, this failed to dispel growing concerns with investors over turbulent Brexit negotiations and a resurgent U.S. dollar. Following a weaker start, the rebounding dollar sent currencies across developed and emerging markets reeling, with volatile sterling taking a large hit. The pound fell more than 1.2 percent to as low as 1.2454 against the US dollar and 1.0999 against the euro.
This morning saw a few minor euro data releases, ahead of CPI, PPI and services PMI data for the eurozone due out tomorrow. For the pound, construction PMI for the UK was released seeing a slight fall from 53.4 to 52.8. With Parliament not due back from recess until Monday there are limited political factors moving the pound currently.
The US dollar will have a busy afternoon with ISM manufacturing data and non-farm employment change figures announced amongst a host of other data releases. This comes ahead of speeches from Fed chair Jerome Powell and FOMC member Raphael Bostic tomorrow afternoon.