Sterling rose steadily higher against the US dollar on Monday, while falling further away from recent multi-year highs against the euro on a day with little in the way of economic releases. After coming under significant pressure from the US dollar towards the end of the previous week, sterling found support on Monday as investors ready themselves for a potentially high-impact US Federal Reserve meeting on Wednesday. The US central bank is expected to announce that it is edging closer to an interest rate hike, but with much of this already priced into the market, sterling was able to recover some ground on Monday. In contrast to this, sterling struggled against the euro as news emerged that the International Monetary Fund had received a loan repayment from Greece.
Today is another quiet day ahead for sterling, with investors looking towards the release of average earnings and the latest interest rate decision from the Bank of England, both of which will be released on Wednesday. Investors are also on tenterhooks as they await the Chancellor’s Budget announcement on the same day.