A mixed day for sterling saw it trade within a narrow range against the euro, while ending largely unchanged against the US dollar despite early sterling strength. Following a slump to its lowest level against the US dollar in four months during the bank holiday Monday, sterling found itself gaining support on Tuesday morning, with investors looking to cash in on the recent strength in the US dollar. However, a reduction in mortgage approvals throughout July saw sterling stumble once more against a resurgent dollar. A higher-than-expected US consumer confidence reading compounded sterling’s decline, entirely erasing earlier gains.
A quiet day today sees little in the way of significant economic releases so it may well be news from elsewhere that affects sterling during the course of the day.