The euro fell to a four-month low against the pound this morning as strong UK housing data supported sterling. The pound also hit a session high against the US dollar and remains the stronger currency today.

Pound Sterling – UK Markets

Sterling was buoyed after data from more UK property websites indicated a solid recovery in the housing market, showing property asking prices in England and Wales were up 0.4% month-on-month in January, contributing to an annual rise of 4.1%. The pound trampled a softened euro and at 0900 GMT traded at GBP/EUR1.1334. Against the dollar the pound was up almost half a percent to touch a session high of 1.634 and continues to trade around 1.632 as of 0900 GMT.

US Dollar – US Markets

Despite losing out to sterling the US dollar has recovered slightly against a weakened euro and traded at circa USD/EUR 0.695 and USD/GBP 0.613 at 0900 GMT today. All eyes will be following the Long-Term Purchases on Tuesday, the Building Permits and the Producer Price Index on Wednesday and the weekly Unemployment Claims on Thursday.

Euro – European Markets

Coupled with some sterling strength, Greece’s poor fiscal health pushed EURGBP to its lowest level since mid-September and the dollar also took advantage of the single currency’s frailties. The euro traded at EUR/GBP0.882 and EUR/USD1.438 at 0924 GMT. Looking ahead to this week, the most interesting news publication from the Euro-Zone seems to be Tuesday’s German ZEW Economic Sentiment, a survey of German institutional investors and analysts who are asked to rate the next 6-month outlook for Germany.

Other Currencies – Highlights

The yen rose close to 200 pips again the dollar, and gained over 300 against the euro and strengthened against the pound in last weeks trading. Relatively positive data was released from the Japanese economy last week including the Current Account, which showed that during November, the Japanese surplus grew by 76.9%. Today the yen trades at GBP0.0067, USD0.0109 and EUR0.0076 at 0936 GMT.