Currency exchange high for sterling

The currency exchange rate for sterling has reached an eight-week high against the euro.

This morning (August 23rd), the pound was trading against the European currency at €1.22 at 09:30 BST.

Concerns about a fragile economic recovery in the eurozone held the single currency back while positive data has been shown to have a lasting effect on the pound.

Last week, the Office for National Statistics revealed figures showing that retail sales volumes in the UK rose nearly three times faster than expected during July.

Ian Stannard, currency strategist at BNP Paribas, told Reuters: "Euro/sterling went through some key levels and a move towards the £0.81 area looks likely, with the euro staying under pressure and broadly underperforming."

Comments from the European Central Bank's (ECB) governing council member Axel Weber had a particularly negative effect on the euro as he suggested that the ECB should extend its loose monetary stance, suggesting that the economy in the eurozone was still in need of assistance.

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Posted by Sarah Pitton