The Sterling traded lower on Wednesday as it was not able to hold onto its gains made over the previous trading sessions. The GBP now finds itself in a position that will test the fortitude of those who feel inclined to participate in range trading. The Nationwide HPI disappointed investors yesterday with an outcome of 0.1%. Today the Manufacturing PMI will be released and the reading is expected to be 57.6, which would be slightly below the previous month’s report. The U.K. is working under the shadows of a EUR centric storm and questions about its own prospects for sustaining growth. The U.K. government has taken strong austerity measures in order to counter what was growing debt. Sterling reacted favorably to the government pronouncements last week, but the last couple of days have produced lackluster results. Going into today’s trading session, traders will be keen to see the Manufacturing PMI data and weigh it against their existing sentiment.
Written by bforex.com
