Sterling weakens slightly against euro on Friday

The pound weakened slightly against the euro on Friday by 0.05 cents (0.04%) to close the day at 1.1430.

• In early trading on Friday, the pound strengthened slightly against the euro after better-than-expected UK housing data buoyed investor hopes that an economic recovery in the UK may soon be underway. Nationwide’s survey showed UK house prices unexpectedly rose 1.2% during April.
  
• Strong London equity market performance also contributed to sterling’s gains early on, with the FTSE up 1.2% mid-morning.
  
• However, profit taking capped sterling’s gains mid-afternoon. In addition, the GfK/NOP UK consumer confidence survey hampered the pound’s progress as it came in at -27 for the second month in a row, ending three months of consecutive gains. As a result, sterling finished slightly down on the day.
  
• In trading so far today, the pound has strengthened against the single currency as investors eye important data and interest rate announcements out this week.
  
• There are no major announcements due in the eurozone today, however at 09.30 BST in the UK, Manufacturing PMI data is out.