Sterling had a mixed reaction during yesterdays trading session. Following the release of upbeat UK manufacturing and industrial figures output, the pound hit the session highs. However dovish comments from Mervyn King during the post-Bank of England inflation report press conference saw all earlier gains reversed.

Comments made by Fed Chief, Ben Bernanke, saw the dollar hit further lows against the pound as his statement on withdrawing emergency measure were deemed more hawkish by markets and very positive for the dollar market.

Discussions around a solution to the ongoing debt problems in Greece helped the euro come off recent lows. The positive news overshadowed some poor French and Italian industrial output figures and caused investors to briefly foray into riskier assets, helping the single currency edge up.

With no key data out on the UK today the markets will look at the release of the US weekly jobless claims and the EC meeting in Brussels regarding the Greece situation to drive the markets.