Pound sterling slipped against the euro as UK manufacturing figures were released
The exchange rate is at €1.132, after reaching a monthly high of €1.141 last week.
Sterling slipped yesterday as UK manufacturing figures were released.
The PMI proved poor, fueling concerns about the UK’s growth prospects.
Activity in Britain’s factory sector tumbled in September, with the manufacturing index sliding from 56.9 to 55.9.
Pound euro exchange rate: Sterling is reeling from poor UK data
It fell below expectations of a more modest drop to 56.4 but remained above the 50 mark which separates growth from contraction.
The fall in activity was largely driven by rising cost pressures on manufacturers.
Despite a strong export figure, factories are struggling to absorb the impact of increased commodity prices as the weakened pound pushes import costs up.
TorFX currency analyst Laura Parsons said: “The poor little pound came under fire yesterday as a poor manufacturing PMI added to fears for the UK’s growth outlook and the Conservatives’ two-day party conference loomed.
Pound euro exchange rate: Sterling is buying €1.132
“Sterling slumped fairly dramatically across the board, with GBP/EUR dropping to a low of €1.127.”
Fresh data due out of the UK today puts the exchange rate under increased risk.
Ms Parsons said: “While the UK’s construction PMI isn’t typically that influential (given that the construction sector accounts for less than 10 per cent of total economic output) if today’s report also falls short, the pound could consolidate its losses against the euro.
“The next influential Eurozone data, the nation’s retail sales report, is due out on Wednesday and is expected to show a 0.3 per cent month-on-month sales increase.”
Pound euro exchange rate: Sterling remains volatile to fresh data out of the UK today
Before noting a dip yesterday, the exchange rate was performing well in response to a weekend of political unrest in the Eurozone.
Sterling rose as the euro sunk when Catalonians went to the polls to vote for independence from Spain.
Catalan officials revealed 90 per cent of those who voted in the illegal referendum called for independence.
Nearly 850 people were injured as police clashed with independence protesters on polling day.