Sterling strengthened vs. single currency yesterday

The pound strengthened against the euro by 0.38 cents (0.33%) yesterday to finish the day at 1.1385.

• In early trading yesterday sterling strengthened against the euro, after news that Germany’s financial regulator BaFin had warned that toxic debt of the country’s banks would explode “like a grenade” unless they accepted government bad-bank plans to prepare for the next phase of the crisis.
  
• The pound’s gains were extended yesterday afternoon after London equity markets pared early losses to head into positive territory. The shortage of economic data out in the UK this week means that investors are likely to take their lead from equities for the foreseeable future. The FTSE 100 eventually finished the day up 46.43 points at 4411.72.
  
• In trading so far today sterling has continued its rise against the single currency after Asian stocks hit their highest level in more than seven months overnight.
  
• There are no major announcements due in UK or eurozone today.