Sterling sitting in the middle; falling against the euro and up against the US dollar

Yesterday was an extremely busy day for sterling as the release of domestic and international data caused sharp movements throughout the day.

The average earnings index released mid-morning caused a sharp rise for sterling against both the euro and US dollar, but this was short lived as Bank of England (BoE) Governor Carney prepared the nation for negative inflation in the coming months and predicted a cut in growth forecasts until 2017. Sterling fell steadily against the euro for the rest of the day but due to poor data out of the US in the afternoon sterling returned to well above the 1.57 mark against the dollar.

Today sees limited UK data releases so we should be in for a quieter day for sterling allowing the markets to digest yesterday’s plethora of data.