EURO/GBP - 1.1982

Sterling fell to a four week low against the euro on Thursday as investors became optimistic over progress in Greek debt talks and concerned over UK economic weakness.  UK data from the Confederation of British Industry showed there was a far worse contraction in sales than had been anticipated.  Sterling strengthened against the US dollar, hitting the highest level against the US currency since December 22nd after breaking through $1.57/£1 on stronger. However, poor GDP  figures on Wednesday and the further likelihood of poor UK data are set to limit sterling’s upside against the US dollar over the longer term.

In the euro zone, the euro hit a 5 week high against the US dollar on speculation over the progress of Greek debt negotiations. Rumours circulated that Greece’s private creditors had agreed to lower the amount paid to them as interest on their bond holdings in order to reach agreement on time and avoid a messy default. This is set to dominate the headlines so call in now for a live exchange rate.