A largely positive Tuesday saw sterling make gains against both the euro and US dollar, during a largely quiet day for economic releases. After ending its eight-day winning streak against the euro on Monday, sterling recovered well yesterday ahead of the European Central Bank (ECB)’s Thursday meeting where they are likely to announce a broad bond-purchase program. Sterling also rose against the US dollar for the first time in four days, to show some signs of recovery from its recent 17-month lows against the dollar.
A big day lies ahead for sterling, with minutes from the Bank of England’s latest policy meeting released in the morning. Any change in the voting pattern of the voting members could see heightened volatility for sterling. Supporting this release, we will also see the average change in wages over the previous three months compared to last year, which is forecast to show a slight increase.