Sterling rose against the euro on Friday, gaining support after the release of better-than-expected services data. The market largely ignored earlier data from Halifax that showed British house prices fell 17.5 percent in the three months to March from a year ago, which was in direct contrast to a Nationwide survey on Thursday that showed UK house prices unexpectedly rose 0.9 percent in March, the first rise since October 2007.
The euro was also undermined on Friday by speculation about the European Central Bank taking non-standard measures to ease the recession, e.g. quantitative easing. ECB President Jean-Claude Trichet signalled there may be another rate cut in May as well as a decision on non-standard measures.
There are no significant economic releases due from the UK today, while the eurozone will release Retail Sales and Producer Price Index data this morning.
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