During the afternoon sterling fell to its lowest level in seven weeks against the US dollar, as it was buoyed by some excellent data from the States which showed that the US economy, unhampered by the poor weather seen at the start of the year, grew by 4% throughout the second quarter. This was then followed by employment data which showed that over 200,000 had found employment in the month of July. With events stateside dominating market focus, market movement for sterling versus the euro was again muted. With inflation data from Germany showing a better-than-expected increase during the past month, sterling did weaken very slightly against the single currency.
Today sees sterling once again overshadowed by events elsewhere, with an early inflation estimate from the Eurozone out in the morning, and labour data from the US in the afternoon.