£/€ 5-month high of 1.1623 yesterday, the pound slipped back sharply in the afternoon to close only marginally higher on the day

• The pound was broadly firmer throughout most of the day on persistent positive sentiment towards the currency in the wake of hawkish comments from Bank of England policymaker Andrew Sentence.
  
  
• Sterling pared its gains though following negative comments from rating agency Standard & Poor on the UK banking system.
  
  
• The agency said Britain was no longer classified as being among the most stable and low-risk banking systems in the world, adding Britain's weak economy would continue to hinder the industry's credit profile.
  
  
• Sterling was sold heavily following the announcement, though remained firmer against the euro as concerns over the fiscal health of Greece and Portugal dented the single currency.
  
  
• In trading this morning the pound is gaining steadily with the markets watching carefully for the eurozone unemployment figure due at 10:00.