On a day with a near empty data calendar, sterling has managed to regain some of its losses against the euro to the more respectable level of €1.1750. Against the US dollar, the pound pushed higher still to a seven week high at $1.5850.
The biggest story of the day is the single currency hitting its highest level against the greenback since April, just touching over $1.35. Speculation that the Federal Reserve will take additional steps to ease monetary policy has helped to depress the dollar over the past fortnight. However, expect to see this price fall slightly as fresh concerns over the health of the European banking sector are beginning to emerge after the bailout of Anglo Irish Bank to the tune of a reported €34billion.
In other news, the Chinese Yuan climbed to its highest level since 1993 amid speculation that the government will allow the currency to appreciate faster than originally expected. The engine room of the world seems to not only be fuelling global economic activity, but it is now lending its hand at controlling the foreign exchange market!
