A steady day for sterling saw it trade largely sideways against both the euro and US dollar. Little influential economic data was released on Monday, with a slight drop in mortgage approvals in the UK, which was largely ignored by the markets. Sterling did, however, briefly drop to a two-week low against the US dollar, before regaining lost ground to end the day up against the US dollar. A reduction in pending home sales in the US allowed sterling to recover somewhat throughout the afternoon. Sterling remained steady against the euro, with a slight increase in German inflation failing to provide the euro with the boost it needs.
Today we see the release of final UK economic growth data for the second quarter of 2014. Coupled with the latest current account balance, this could provide sterling with an early morning movement.