Sterling sustained its steady fall across the board yesterday as investors continued to sell sterling following the inflation report hearings, that played down speculation that the Bank of England (BoE) was looking to raise interest rates sooner rather than later. With no economic data from the UK to support the currency yesterday, sterling continued its slide to two-week lows against the euro. Disappointing economic growth data from the US offered a brief reprieve against the US dollar, as sterling rose close to its recent highs before falling away again throughout the afternoon.
Today looks to be another quiet day for sterling, with BoE Governor Mark Carney’s speech in the morning the highlight. After last week’s comments from Carney saw sterling soar to fresh highs, we can expect some investors to be listening carefully for any clues regarding monetary policy.