Sterling struggled on Tuesday, losing value across the board following inflation report hearings from the Bank of England Governor and a number of policy makers. With Mark Carney previously heightening speculation that interest rates could increase before 2015, sterling had been soaring as investors look to capitalise on this. Today’s hearings however dampened this optimism as Carney signalled that interest rates may not in fact rise as soon as previously thought. Drawing particular attention to unemployment figures, he claimed that there appeared to be more spare capacity in the labour market than previously established. This saw sterling fall away from its multi-year highs, although still remaining in a strong position with a 7.9% gain against its peers this year.
No major economic data is scheduled from the UK today, and instead particular attention will be paid to the US. Here, the release of final growth figures are forecast to show that the US has economy shrunk in the first quarter of this year which could see sterling recover lost ground.