Sterling extended its losses on Friday against the US dollar, testing one week lows due to poor economic data. Poor construction data along with consumer confidence caused the pound to fall. Furthermore, the economy is showing no signs of improvement with ongoing Brexit uncertainty weighing heavily on the pound.
An IHS Markit/CIPS survey showed a deepening construction downturn in December, driven by the sharpest drop in civil engineering activity since 2009. Meanwhile, growth in unsecured consumer lending slowed to 5.7% in the year to November, the smallest increase since June 2014.
Lastly, Parliament is back this week to debate the withdrawal agreement Boris Johnson has agreed with the EU. The bill will go to Parliament’s upper house on Thursday. Sterling is likely to remain volatile with the ongoing Brexit uncertainty.