The pound has made gains across the board today (despite a roller coaster morning) with the most notable progress made vs. EUR, SEK and ZAR.
The move is a little suprising as we had some inflation data out this morning for the service sector that showed a slower increase in prices than was expected. This reduces the chance of an interest hike in the UK so as a general rule of thumb is bad news for sterling. Sterling gains vs. the euro have been helped by worse than expected retail sales from the EU which were 1.1% worse than analyst predictions for the month, bringing year on year figures down as well.
As I’m typing this GBPEUR has just hit 1.19 interbank level as the rally continues. it appears to be due to increased risk appetite from investors and speculators which is creating some excellent opportunities for anyone looking to buy euros with sterling.