During a day which saw no major economic releases, sterling was able to gain steady ground against both the US dollar and euro. The day’s most influential data came from Germany, where a consumer climate survey showed that financial confidence had fallen for the first time since late 2013. This allowed sterling to rise steadily against the euro, before being pegged back later in the day after the German finance minister stated that the likelihood of any drastic measures by the European Central Bank (ECB) next week was low.
Sterling’s rally against the US dollar looked more straightforward, as investors moved to lock in profits from the dollar’s recent strong run ahead of today’s data releases. Today will provide more of an indication as to whether sterling is able to break out of its slump, with inflation data from the Eurozone and economic growth and labour data from the States having the potential to affect the markets significantly.