A reasonable start to the week for sterling saw it gain ground across the board as it looked to shake off the uncertainty from recent weeks and focus on the strong economic performance of the UK, which has seen sterling appreciate considerably over the past year. With sterling a victim of profit-taking by investors in the wake of its surge following the Scottish Independence ‘No’ vote, it consolidated its position on Monday, pushing slightly higher against both the euro and US dollar. Despite heightened political uncertainty, the fundamental outlook for the UK still appears strong, with recent data from the UK pointing towards decreased unemployment and a rise in average wages.
Today we see the release of mortgage approvals from the British Bankers’ Association as well as the latest level of public sector net borrowing. These figures are expected to have a muted effect on the markets, with movement being driven by news from elsewhere.