Sterling in currency exchange rebound

The currency exchange rate of sterling has risen against the euro following weak economic data from the eurozone.

A poor purchasing managers index for the single currency area worked against the euro, while painting sterling in a better light.

This morning (September 24th), sterling was trading against the euro at €1.17 at 08:45 BST.

However, analysts suggested that the pound was not yet in the clear as the latest minutes from the Bank of England's Monetary Policy Committee's meeting revealed that the case for monetary easing had in fact strengthened over the course of the past month.

Geraldine Concagh, economist at AIB Group Treasury, told Reuters: "Sterling had been sold quite heavily on Wednesday and there has been a bit of a corrective move.

"But I think sterling will remain vulnerable with the market now speculating there may be more quantitative easing."

Meanwhile, the pound held steady against the US dollar at $1.56.

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Posted by Sarah Pitton