Mixed bag for sterling on a tumultuous day for the markets

Sterling pushed higher against the US dollar and commodity-based currencies on Monday, while tumbling against the euro. The British currency began the day in a vulnerable position as it tumbled against the euro. With the global economy providing a climate more favourable to a policy of low interest rates by central banks, sterling found itself falling close to a four-month low against the single currency. However, this same sentiment pushed sterling to a two month high against the US dollar, with bets on a September interest rate hike being pushed back.

Data released today will focus on German business climate data and consumer confidence data from the US. Despite this relative lack of fundamental data, there is sure to be further movement caused by the global equities selloff.