The euro has enjoyed a positive 24 hours as economic data indicated that the continent was on an upward curve.

This morning the euro stood at 1.4665 to the pound and 1.2148 against the dollar.

European research agency Eurostat said inflation in the EU dropped to 2.5 per cent, a less marked drop than had been anticipated.

Inflation remains above the European Central Bank's target of two per cent - the tenth month it has done so in a row - with positive sentiment among European business adding to the mounting momentum for a rate rise.

Meanwhile, Germany saw its consumer optimism hit a four-month high according to a report from GfK, with the consumer climate index touching 3.4 for November, up from 3.1 this month.

ECB president Jean Claude Trichet and others at the bank are now said to be watching developments closely, with a rate rise on the cards.