Sterling continues revival

Sterling was steady against the dollar and euro this morning after positive data on UK house prices and consumer confidence emerged to boost the pounds recovery from last week. The dollar slipped against the euro as investors await more US data to be released later today while the yen rose, helped by month-end demand from Japanese companies.

Pound Sterling - UK markets

The pound is on track for its biggest weekly rise against the euro in nine months, currently trading at GBP/EUR1.115. Sterling's rebound from last weeks steep decline was given a boost by UK data showing rises in house prices this month and improving consumer confidence.

This week's bounce has also been underpinned by the release of solid US growth figures on Thursday, which lifted sterling to its highest in six weeks. This morning it was trading at 1.653 against the dollar.

However, some analysts say the pound may give back some of these gains as attention turns to the Bank of England's policy meeting next week.

US Dollar - US Markets

Investors will be watching Friday's US data closely as the dollar drifted against the euro, trading around USD/EUR0.67 and 0.605 against the pound.

The dollar slipped against the yen due to month-end selling in Japan, falling 0.5% to 90.98 yen. This weeks data on US GDP has shown that the world's main economy is coming out of its year-long crisis, which has allowed Asian markets to advance.

Euro – European Markets

The euro was flat on the day against the pound at 89.56 pence, having traded the previous day as low as 89.12 pence, its weakest since mid-September. The single currency remained steady against the dollar at 1.482 after jumping over 0.8% the previous day.

Investors' optimism after US GDP's advance seems to have faded, leaving the euro to consolidate under Thursday's highs.

 Other Currencies - Highlights

The yen has strengthened against a number of currencies today after the year's biggest first-day launch for a single series of Japanese mutual bonds.

The higher-yielding Australian dollar fell 0.9% to 83.01 yen and the New Zealand dollar dropped 1 percent to 66.35 yen. They were also weaker on the day against the dollar trading at AUD/USD0.914 and NZD/USD0.729 respectively.

Meanwhile Canada's dollar emerged from a three-week low against its US counterpart strengthening 1.3% to CAD1.0672. The loonie rose as stocks and commodities surged following this week's positive data on the US economy.