A relatively flat day for sterling saw it end the day slightly down against the US dollar, but make marginal gains against the euro, holding it close to levels last seen in 2007. With little economic news released from around the globe, sterling benefited from a fall in German import prices of 1.7%. The US Federal Reserve announcement late in the day was very much as expected and as such had little effect on sterling overnight.
Release of the latest UK housing inflation data looks to be today’s standout release for sterling, with a further increase in housing prices of 0.4% forecast. Other data releases from the UK today and tomorrow are low key so we will have to look for news from elsewhere to influence sterling such as inflation data from the Eurozone today and tomorrow and employment data from the US.