The pound finishes up against the euro

The pound strengthened by 0.84 cents (0.72%) against the euro on Friday, closing the day at 1.1829.

• In early trading on Friday sterling strengthened against the euro, as the lack of economic data prompted traders to take their lead from equity markets. The FTSE 100 eventually finished the day up 65.07 (1.52%).
  
• It also allowed investors to reconsider a week of less positive data for the pound, and therefore reassess whether the UK economy really is on the road to recovery. Poor retail sales and unemployment data earlier in the week had hit sterling, however sentiment improved on Friday.
  
• In addition, a warning from the European Central Bank that banks in the region might face another $283 billion of losses by the end of next year reduced appetite for the single currency.
  
• In trading so far today the pound has continued its rise against the euro, after comments over the weekend from Jean-Claude Trichet, President of the ECB, who said there would be no more stimulus packages in the region. ‘In our analysis, this is sufficient,’ he said.
  
• There are no major announcements due in the UK today.