Sterling finishes slightly down against single currency

Sterling touched a 5-week low against the single currency in early trading yesterday before recovering late in the day to finish just a quarter of a cent down.

• The pound came under selling pressure in early trading as equity markets in Europe opened lower than Friday.
  
• Investors were initially concerned about the economic prospects facing the global economy at present, however these concerns soon abated as risk appetite returned to markets.
  
• The FTSE 100 ended the day 1.8% higher, boosted in particular by stronger mining and energy stocks.
  
• In early trading today the FTSE 100 is marginally up, boosted by economic news released overnight. The Royal Institute of Chartered Surveyors released better-than-expected news about the housing market, their reading the best since September 2007.
  
• The British Retail Consortium has also revealed much better-than-expected retail sales figures, boosted by the hot weather in June.
  
• Investors will take note of inflation figures released in the UK this morning and the ZEW economic sentiment survey out in Germany.