Sterling rose against US dollar yesterday

Sterling strengthened against the US dollar yesterday by 0.18 cents (0.11%), finishing the day at $1.5924.

• In early trading yesterday, sterling weakened against the greenback as traders booked profits following the pound’s rally last week. Early falls on global equity markets also contributed to sterling’s falls.
  
• News of more missile launches by North Korea also triggered safe-haven demand for the dollar, with investors selling off the riskier pound.
  
• However, stronger-than-forecast US consumer confidence data released yesterday afternoon drove demand for sterling, pushing it into positive territory. The Conference Board’s index rose from an upwardly revised 40.8 in April to 54.9 in May, well ahead of the 42.0 analysts had been expecting.
  
• In trading so far today, the pound has resumed its rise against the greenback as improved risk sentiment continues to flood the market.
  
• In the US, Existing Home Sales data will be released at 15.00 BST today. There are no major announcements due in the UK.