Sterling continued its rally against the US dollar, while struggling to hold close to its recent high against the euro. Sterling markets reacted positively to the release of fourth quarter UK growth figures even though they showed growth of only 0.5% when the forecast was 0.6%. The market though decided to focus on the annual growth rate of 2.6% which is the fastest rate of UK growth since the crisis started. With financial markets still nervous following the recent election result in Greece, sterling struggled against the euro as investors reacted positively to European Union finance ministers stating their willingness to negotiate with the new Greek government.
A quiet day from around the globe will see investor attention focussed on the US, where we will see the latest decision from the Federal Open Market Committee on US interest rates this evening.