Currency Note Sterling

Sterling benefits from euro weakness

By Ricky Bean September 22nd, 2015

Sterling made a strong start to the week on Monday, rising to a one month high against the euro despite slipping from the recent highs against the US dollar.

With no major economic data released on Monday, sterling’s movement was largely dictated by events elsewhere. A sweeping victory for the ruling Syriza party in the Greek parliamentary elections could have seen sterling struggle against the euro; however, with European Central Bank (ECB) President Draghi widely expected to talk the euro down when he speaks on Wednesday, this was not the case. Confirmation from Bank of England (BoE) member Cunliffe that the next interest rate move would be an increase allowed sterling to sustain its strong performance versus the euro.

Another relatively quiet day lies ahead for sterling, with little from the UK aside from the release of public sector net borrowing figures likely to excite markets. It is expected to show a significant positive figure after last month’s deficit.