Having slid against the euro yesterday, the pound is recovering to nearer 1.14 so far today

Sterling neared one-month lows yesterday, losing 0.75% against the single currency to close down at 1.1342.

• The eurozone was given a real boost after the European Commission predicted that the EU would return to growth in the third quarter, supporting demand for the currency.
  
• Additionally, investment demand in the pound was sapped as global equities, which have been influential in the pound’s direction in recent weeks, traded deeply in the red.
  
• Sterling also suffered as concern for the economic environment was rekindled following a report showing a negative credit outlook for UK banks over the next 12-18 months.
  
• In trading this morning though, the pound has begun to recover its losses, currently trading around 0.3% up for day, following data that revealed British house prices rose for the first time in more than two years.
  
• The German ZEW committee releases data on economic sentiment today at 10:00BST, and is forecast to produce an improved reading which will support demand for the euro.