Sterling drifts lower on lack of UK data

A quiet day on the data front saw sterling once again struggle against its peers from the US and Europe, as investors appear to be cashing in on sterling’s strong performance over the past year. After hitting multi-year highs against the US dollar earlier in the month, sterling has steadily declined and hit fresh six-week lows against the US dollar yesterday as consumer confidence in the states was shown to have increased. Sterling proved to be more resilient against the euro, weakening only slightly as the pair traded within a narrow range throughout the day.

Little UK data out today so attention will again be focused overseas, with the German inflation figures out first thing and the latest interest rate decision from the US Federal Open Market Committee towards the end of our day looking to be the major events that could affect sterling.