STERLING FALLS AHEAD

Sterling falls ahead of British manufacturing data

LONDON (Reuters) - Sterling traded near eight-month lows against the dollar on Monday as investors awaited data on the manufacturing sector and a cabinet meeting later in the week in which British ministers will try to agree on a common position on Brexit.


The pound has been weighed down recently by a resurgent U.S. dollar, weakness in the economy and fears that Prime Minister Theresa May will run out of time to agree a deal with the European Union for life after Britain leaves the bloc next year.

The currency has slumped more than 6 percent since April, its worst quarter since the June 2016 vote to leave the EU.

Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv


By 0810 GMT the pound was down 0.4 percent at $1.3155. In June it fell to $1.3050, its lowest level since November.

Economists polled by Reuters expect the Markit/CIPS manufacturing Purchasing Managers’ Index to show a reading of 54 for June when the data comes out at 0830 GMT.

A series of corporate warnings last week about the effect on Britain’s economy if a Brexit deal is not agreed soon has lowered expectations of a Bank of England interest rate rise this summer.

(This version of the story was corrected to say manufacturing, not construction data in headline, lede)

Reporting by Tom Finn; Editing by Catherine Evans
https://www.reuters.com/article/uk-britain-sterling/sterling-falls-ahead-of-british-manufacturing-data-idUSKBN1JS0SW