Sterling continued its recent strong performance against the euro on Tuesday, pushing ever higher against the single currency as concern grew around the Greek debt situation, hitting levels last seen in 2007. In contrast to this, sterling struggled against a buoyant US dollar, reversing the gains of the previous day. Bank of England Governor Carney commented that inflation in the UK was expected to fall to zero over the next few months, and would likely struggle to push further above that level in 2015. This came after finance ministers of a number of OPEC member nations confirmed that the oil producing bloc is likely maintain its high level of production at its next meeting.
Today sees the first major UK data release of this week, with manufacturing and industrial production for January figures out this morning. The data is expected to show only modest growth in production.