Thursday, 11 June 2009

Sterling hits year high against EUR

Sterling strengthened against the euro by 1.05 cents (0.91%) yesterday to close the day at a six-month high of 1.1696.
  • In early trading yesterday the pound rose against the single currency as gains on London equities buoyed investor confidence in the UK’s economy. The FTSE 100 was up 1.6% in early trade.
  • A greater-than-expected fall in French industrial output in April did little to ease the euro’s plight mid-morning, as it revealed a contraction of 1.4%, over the 0.2% predicted.
  • Further aiding sterling’s gains were stronger-than-forecast UK manufacturing figures, which revealed 0.2% growth in the sector last month, versus the 0.1% contraction expected. Industrial production was also up 0.3% this month.
  • In trading so far today the pound has resumed its rally against the single currency, breaking through the 1.17 level as investors continue to digest recent data releases.
  • There are no major announcements due in the UK or eurozone today.

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