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According to Reuters, sterling was up to $1.5512 after increasing to $1.5680 on New Year's Eve.
The news provider stated this morning's hike was due to an overnight sell-off, although there were risks in the UK manufacturing data as the purchasing managers' index is expected to show a decline down to 57.0 in December from 58.0 the previous month.
Nicole Elliott, technical analyst at Mizuho Corporate Bank, said: "Give it (sterling) a few days to sort itself out, watching to see if it can settle closer to the $1.5800 area."
This comes after sterling made gains of 0.65 per cent on New Year's Eve to stand at $1.5520 after Nationwide revealed UK house prices had increased by 0.4 per cent in December, the first rise since May.
Posted by Greg Secker
