31.01.12

Sterling Hits 8 Day High Versus Euro

The pound struck an eight day high against the euro this afternoon as the glow which was shining brightly over the eurozone area has already began to disappear. Optimism the eurozone agreement yesterday is fast wavering and the agreement remains fragile.
Another factor which is weighing heavily on the currency markets has been the disappointing US economic data released this afternoon. This came in the form of weaker consumer confidence and a weaker Chicago PMI number. This has led to funds coming out of the single currency and back into the US dollar. Flows have also gone into sterling as cable has weathered the storm well this afternoon.