A steady day for sterling yesterday as it tried to hold onto recent record highs. With little economic data from the UK yesterday, movements were dictated by market data releases elsewhere. In spite of European manufacturing growth data coming in below expectations, sterling weakened slightly, ending the day marginally down. The currency is still close to recent highs against the euro and the US dollar.
Today we hear testimony from Governor Carney and a number of the Bank of England’s policy makers, as well as the inflation report hearings; these can be lengthy and tend to create market volatility as investors react to the views of the members. We can also expect to hear questions relating to when Carney sees interest rates rising, which will draw a great deal of interest.