Final first quarter UK growth figures were released on Tuesday, outstripping the previous estimates to help sterling reverse some of the Monday’s losses against the euro. Sterling found itself largely trading within narrow boundaries, as investors were cagey thanks to the situation between Greece and her creditors. With the deadline for Greece’s repayment of €1.6 billion to the International Monetary Fund passing without a deal being struck, sterling advanced against a beleaguered euro throughout the afternoon – especially once the economic growth figures had been released, along with the news that there had also been a £2 billion reduction in the UK current account deficit.
Sterling was not able to perform so well against the US dollar, and fell away throughout the afternoon as consumer confidence data indicated that US citizens were feeling more optimistic about economic conditions in their country.
Today sees the release of the first of June’s Purchasing Managers’ Index data. Figures from the manufacturing industry will be released today, and are expected to show further modest growth in this sector. We will also hear from Bank of England Governor Mark Carney later this morning, where we may receive some hints as to future monetary policy.