There was little movement in the sterling/euro price yesterday with little economic data to give direction

The pound closed down for the fourth consecutive day against the single currency yesterday, though trading remained range bound with the price just nudging below 1.11.

• The euro found initial support after data showed a flash reading of the purchasing managers' services index in the euro zone grew at its fastest pace in two years in November.
  
• PMI data from Germany and France was also supportive, though the market took little direction from the figures and sterling gradually recovered its early losses, buoyed by higher equities.
  
• In his speech in the afternoon, ECB President Trichet again reiterated his stance on the need for a strong US dollar. His comments had little effect on the sterling/euro price with the markets aware that no new information was being offered.
  
• Indeed the price remained tightly range bound throughout European trading hours, with little economic data for the markets to take their lead from.
  
• Trading this morning could be more volatile with the UK's Inflation Report hearings due to start at 09:45, which should give investors a good indication of the UK's economic outlook.