Yesterday was a mixed day for sterling which saw it hit a fresh seven-year high against the euro, whilst falling to its lowest level since early February against the US dollar. Sterling started the day in poor form, with poor service sector data for February. After this missed the forecast level, the UK currency fell especially as the services sector makes up around 70% of the UK economy. Sterling recovered strongly against the euro throughout the afternoon as US dollar strength saw a massive sell-off in the euro as better-than-expected US employment data saw the US dollar find significant support.
Today will see confirmation from the Bank of England over their latest interest rate decision. This is not expected to deviate from the current 0.5% level, and if this is correct we are unlikely to see much effect until the release of minutes in a couple of weeks.