Pound falls to 11-week low vs. euro

Bullish global equity markets were unable to prevent the pound from falling to an 11-week low of 1.1461 against the euro yesterday before eventually closing at 1.1475.

• Sterling continued to slide against the single currency, stung by the view that UK interest rates will stay low as the economy struggles, while strong eurozone data boosted optimism about the pace of that region’s recovery.
  
• Eurozone industrial orders came in much higher than expected, rising 3.1% in June from the previous month, beating forecasts of 1.7%, and helping to extend the euro’s gains.
  
• Although the FTSE rose by a further 0.9% yesterday, aided by a UK survey revealing a record surge in confidence among business professionals, the bull market failed to strengthen the pound.
  
• Traders will be keenly listening to the words of BoE Deputy Governor Charles Bean, who speaks today at 17:15BST, for clues about future economic policy. There are no major announcements in the eurozone today.