Monday saw sterling bucked its recent trend against the US dollar by strengthening for the first time in four days. With little economic news released from around the globe, the markets were largely driven by reaction to the Greek elections. With speculation mounting that the anti-austerity Syriza party are looking to negotiate a deal allowing Greece to remain in the Eurozone, sterling retreated from seven-year highs against the euro throughout the day as the single currency strengthened.
The UK currency was able to recover some ground against the US dollar as Bank of England (BoE) policy maker Kirsten Forbes commented that an improving global economy could see the BoE raise interest rates before 2016 as has been expected. Today sees the release of the first UK economic growth estimate for the final quarter of 2104, which is expected to show a slight slowdown in the level of growth. Any deviations from expectations has the potential to cause movement in sterling.