Sterling up against euro on data-less Friday

Sterling strengthened by 0.52 cents (0.44%) against the euro on Friday, closing the day at 1.1753.

• In early trading on Friday sterling strengthened against the euro as traders took their lead from strong London equities.
  
• With little data out, Friday also gave investors the chance to reflect on some important economic announcements out earlier in the week. Bank of England Governor Mervyn King’s cautionary comments on Wednesday dampened demand for sterling, however the European Central Bank’s one-year refinancing plan announced the same day also caused jitters in the market.
  
• This resulted in a volatile day’s trading, with the pound eventually heading higher as traders reassessed their views from earlier in the week.
  
• In trading so far today the pound is down very slightly against the single currency as investors look ahead to this week’s important announcements, including the European Central Bank’s interest rate decision on Thursday.
  
• There are no major announcements due in the UK or eurozone today.