With little major economic data to support its strong position, sterling struggled across the board yesterday. After opening near its recent high levels following the bank holiday on Monday, sterling drifted lower throughout the day against both the US dollar and the euro. British Bankers’ Association mortgage approvals were shown to have fallen throughout the past month which, along with strong data from the US, contributed to sterling’s decline. Some analysts are also predicting that the recent victory for UKIP at the European elections may dampen investor enthusiasm for sterling, although it will take time for any significant effect to become apparent.
Today sees no major data releases from the UK. The only release of note will be the Confederation of British Industry’s realised sales data which will give a rough indication of consumer spending throughout May and isn’t expected to move sterling unduly.
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