Wednesday was a quiet day for sterling, as it largely traded sideways against both the euro and US dollar. Gains were made throughout the early part of the day with sentiment for sterling still high after Tuesday’s core inflation data beat expectations, and sterling saw an increase against the US dollar in the morning as a member of the Bank of England highlighted that the quarterly inflation report should not be taken as gospel when it stated interest rates would not increase until a specific time.
However, this strength proved to be short-lived, and the British currency later fell away against the US dollar as investors looked ahead to the release of minutes from yesterday’ meeting of the US Federal Reserve. Against the euro, sterling had a more positive showing, making slight gains against the single currency.
Today brings the release of retail sales figures from the UK throughout the month of October. Following recent positive data from the UK, any expectation beating retail sales figures could see the currency push even higher against the euro.