A largely positive day for sterling on Monday saw it push significantly higher versus the US dollar, whilst trading within relatively narrow boundaries against the euro. A relatively quiet week on the data front for sterling will likely see movements in the currency largely influenced by news from elsewhere. This proved to be the case on Monday, with disappointing services sector growth data from the US allowing sterling to push to the highest levels against the US dollar seen since early March. Coupled with emerging evidence last week that the US economy is losing some steam, sterling looks set to take advantage of the situation.
With little headline news regarding the UK election and the Greek debt situation lacking resolution, sterling saw little significant movement against the euro, and remained below the recent one-month high enjoyed during the middle of last week.
Today sees the release of preliminary UK economic growth data from the first quarter of 2015. As the earliest estimate of this data released, the preliminary reading is set to be eagerly anticipated by investors, and any significant deviation from the growth forecast of 0.5% could see a spell of movement for sterling.