Tuesday was a positive day for sterling, with it making gains, albeit small, against both the euro and US dollar with very little economic data released around the globe. Given the largely negative movement that sterling has experienced over more recent weeks, a better-than-expected trade balance gave sterling a surprise lift.
Sterling had started the day on the back foot thanks to increased support for the euro following the submission of a new proposal about their debt repayments from the Greek government. However, with the news emerging that the latest proposals from Greece fell short of commitments made last week sterling was able to strengthen as the day went on – especially once the better than expected trade balance figures were released.
Today sees the release of manufacturing production figures from the UK, which are expected to show a slight slowdown in manufacturing growth.