Political uncertainty caps sterling's gains against euro

The pound finished up 0.35 cents (0.31%) against the euro on Friday, closing the day at 1.1437.

• In early trading on Friday, the pound weakened against the euro as the UK’s political situation became increasingly fragile. The uncertainty surrounding Prime Minister Gordon Brown’s future and his cabinet reshuffle weighed on the pound early on.
  
• However, strong equity markets drove sterling higher on Friday afternoon. The FTSE 100 eventually finished the day up 51.62 (1.18%).
  
• In trading so far today, the pound has started well down against the euro as Prime Minister Gordon Brown faces renewed pressure to quit following disastrous European election results. The local currency rarely benefits from political uncertainty.
  
• There are no major announcements due in the UK or eurozone today.