Euro rallies on the Pound

The euro has rallied against the pound during early morning forex trading today (October 5th) as traders awaited the release of UK service sector data.

According to Reuters, the European currency was up 0.5 per cent against its British counterpart by 08:50 BST, putting it on 86.84p.

The climb cancelled out falls that occurred yesterday, when investors moved away from long euro positions after seeing the currency surge against sterling and the dollar.

On Monday, the euro reached a four-month high against the pound as worries mounted over the pace of the economic recovery in the UK.

Trading was muted this morning as investors anticipated the publication of figures for the service sector, which are anticipated to show growth on the index further slowed during August.

A dip to 51 points from 51.3 is anticipated and Mark Oswald of Monument Securities was quoted by the news source as saying a greater-than-expected drop could bring "more … market talk about quantitative easing".