Another quiet day for sterling saw it gain ground against the US dollar to end the day in a better position than at the start of the week. With little significant data released from either the UK or the US, and a state holiday in the US in honour of Veterans day, trading volumes were reduced. Sterling’s performance was also subdued against the euro, as early morning gains were eroded throughout the afternoon to bring the UK currency back to the level at which it started the day.
Today sees a raft of data from the UK, with the Bank of England (BoE)’s inflation report likely to take the headlines. A Reuters poll yesterday pointed towards the BoE lowering their forecasts for the economy, a result which could see sterling falter. Before this we will see the latest jobs report, with the focus likely to be on average earnings. Expectations are for only slight movements from the previous month.