A mixed day for sterling saw it push to the highest levels in a month against the euro, while falling against a resurgent US dollar. With no significant data released from the UK, sterling movement on Tuesday was largely in reaction to news from elsewhere. The situation with the Greek debt negotiations once again dominated proceedings, with Monday’s optimism taking a significant hit as the deadline for the proposed cash-for-reforms deal moved closer.
Sterling rose over a cent throughout the day as markets took a dim view of the Greek government’s prospects of pushing the necessary reform through parliament. Only time will tell whether we will see a deal struck today, but sterling is likely to see significant movement before a decision is reached. In contrast to this, the UK currency fell significantly against a strong US dollar.
Sterling has been the stand out performer this morning following comments from one of the members of the Bank of England who suggested some members feel an interest rate hike as early as August could be appropriate.
Today we will see release of economic growth figures for the previous quarter from the US, as well as a meeting of European finance ministers, which may finally shed some light on Greece’s chances of a deal being struck.