Another positive day for sterling saw it push to a fresh six month high against the US dollar, thanks in part to further poor labour data from the US. However, a tough start to the day had seen sterling fall away in early trading, and emerging news that Greece had made a repayment to the International Monetary Fund. Following better than expected UK industrial and manufacturing production figures from March, sterling recovered much of the loss seen against the euro, and continued its strong recovery against the US dollar throughout the afternoon.
Today is an important day for sterling, with the release of the influential quarterly inflation report from the Bank of England (BoE). This will outline the bank’s projections for inflation and economic growth, and much focus will be on how long they see the current period of low inflation lasting. Further testimony from BoE Governor Mark Carney should provide further insight into policy maker’s thoughts on the UK economy.