Sterling falls vs. euro despite ECB's refi

The pound weakened by 0.44 cents (0.37%) against the euro yesterday to close the day at 1.1785.

• In early trading yesterday, sterling strengthened against the euro, hitting its highest level since December ahead of the European Central Bank’s first ever one-year refinancing operation tomorrow.
  
• This announcement overshadowed better-than-expected German IFO Business Climate figures out mid-morning.
  
• However, weak London equities eventually dragged the pound into negative territory. The FTSE 100 finished down 111.88 (2.57%), with British Airways taking a particular hit, falling as much as 8% at some points.
  
• In trading so far today, the pound has continued its decline against the single currency as investors again take their lead from broader market movements. There are no major announcements due in the UK or the eurozone today.