Sterling enjoyed a positive day against the majority of its major trade partners yesterday, with only the euro holding ground following better than expected German business climate data. The positive nature of the day saw sterling rising close to a six-year high against the Japanese yen and gaining half a cent on the US dollar.
Today sees testimony from Bank of England Governor Carney and other members of the central bank to Parliament’s Treasury Committee. This will focus on inflation, and provide a keen insight into their view on the economic outlook for the UK. With the speakers likely to mention the currency markets we can expect increased volatility during the hearing.