The pound recovered in trading yesterday and has continued to post gains against the euro this morning

The pound rallied strongly against a broadly weaker euro yesterday, recouping losses incurred on Tuesday to close the day back up at 1.1166.

• The euro came under slight pressure after data that showed industrial production in the 16-nation euro zone rose 0.3% in September. Compared to the same month last year, output was down 12.9%.
  
• The euro also suffered heavily against the US dollar and traders cited that heavy sell off as cause for the single-currency's weakness against the pound.
  
• Analysts noted that overall action in currency markets remained largely driven by technical considerations yesterday amid a lack of major economic data to drive foreign-exchange trading.
  
• In trading this morning, the euro has come under further pressure, after both the Germany and French economies undershot their growth forecasts for the third quarter.
  
• It has been revealed that in the three months through September, German GDP was 0.7%, marginally below the 0.8% prediction. Meanwhile, French GDP for the same period was at 0.3%, some way below the 0.6% forecast.
  
• The pair are currently hovering just above 1.12