Sterling hits high as euro stumbles
Sterling rode high in the last 24 hours against the euro, although fared less well in relation to the dollar.
Positive signs from the US economy helped strengthen the dollar, which gained almost one per cent against the euro, with the euro under pressure amid an increasingly closely contested German election.
A second televised debate last night left the picture no clearer, with the outcome of an ill-tempered clash between German Chancellor Gerhard Schroeder and his challenger Angela Merkel increasing the prospect of a coalition government.
With many analysts predicting that a firm majority is necessary to enact economic reform in the country the euro struggled.
Sterling registered a ten-week high against the euro as a consequence, with the currency's trajectory moving forward expected to be determined by the British consumer inflation details being published on Tuesday.
HSBC Markets currency strategist David Bloom told Reuters that the data, along with US economic information, would be instrumental in determining currency movements toward the end of the week.