The euro rose against the dollar after the publication of the German Ifo survey for December.

The dollar stood at 1.1990 to the euro and was at 1.4713 against the pound after the survey showed German business morale to be high.

The Ifo Institute's climate indicator from its monthly survey of around 7,000 firms rose to an unexpected high of 99.6 for December, following a rating of 97.9 in November.

Daragh Maher, senior currency strategist at Calyon, told the Reuters news agency: "It shows that the German economy is undergoing quite a strong recovery phase and that will keep the Bundesbank members of the ECB calling for higher rates."

The euro was also up 0.2 per cent on the yen on Friday, but still down by around three per cent from a record high at the start of the week.

Many experts believe that business confidence indicators from France, Italy and Belgium that are set to be published shortly, will reinforce the positive outlook and signs of recovery for the Euro seen in the Ifo poll.

While the city activity will begin to ease up this week as Christmas approaches, Capita issues its report this week - the only FTSE 100 company to report.

Wood Group is another set to announce results, while First Technology will issue its interim results.