Will sterling have a better day?

Despite struggling throughout early trading on Monday, sterling was able to recover during the afternoon to post marginal gains against both the euro and US dollar during a day with little in the way of economic data releases. A bank holiday in the US led to a fairly quiet day against the US dollar, with dollar trading volumes lower than usual. Sterling did, however, fall sharply against the euro throughout the morning, pushing close to recent five-month lows as a member of the European Central Bank stated his belief that there was no need to expand the European monetary easing program. Sterling soon recovered however, pushing higher against the euro towards the end of the day ahead of the release of September inflation figures this morning.

Aside from UK inflation data, the day ahead looks set to remain relatively quiet on the data front, with testimony from two members of the Bank of England (BoE) later in the day providing the main other point of interest for sterling watchers.