The Queens Speech at the opening to Parliament seemed to bring little joy for sterling as it had a difficult afternoon and struggled across the board. Today we have the release of the EU referendum bill by the government.
A positive start to the day saw sterling push to a two-month high against the euro, with markets considering the likelihood of bad news regarding the Greek debt situation. However, following the announcement by a Greek government official that the nation were to begin drafting a funding agreement with its creditors, sterling found itself under pressure. After strengthening against the euro for 3 days straight, sterling fell sharply following the release of this news as hope grew of a solution to the long standing issue. The UK currency also struggled against its other major trade partners as demand for sterling as a haven currency lessened in the wake of this news.
Sterling extended its losing run against the US dollar, as speculation mounted that we could see a number of Federal Reserve members push for a rate hike in June.
Limited data releases in the UK today and tomorrow we have the release of the second estimate of UK economic growth throughout the second quarter. With little other economic news released from the UK this week, investors will be eagerly awaiting this data. Eyes will also be on the ongoing G7 meetings, where we will expect to hear more revelations.