Sterling lost some ground yesterday morning, thanks to the release of poor UK employment data. However, come the afternoon sterling started to strengthen which accelerated into the early evening as the Greek parliament began to debate the austerity measures required by the Eurozone. Even though the Greek parliament acquiesced, we start today with sterling very close to levels last seen against the euro in 2008.
We expect today to be somewhat less active for sterling. Bank of England (BoE) Governor Mark Carney will speak at around 2:00pm, discussing the current UK economic situation, as well as the short-term possibility of interest rate increases. Markets and traders will no doubt be scrutinising his every word, as usual – and this always has an effect on the currency market, so it should be interesting to see what effect this has on sterling in the afternoon.