Weaker Euro hits best rate since February

Fears that the EU summit has done little to ease Eurozone sovereign debt has pushed the single currency to its cheapest level against the Pound since March. The UK’s apparent isolation does not seem to have hurt sterling, and Friday’s initial Euro rally petered out in less than 24 trading hours due to legal uncertainty surrounding the new pact and the absence of an unlimited financial backstop for the single currency from the ECB. We now have the best exchange rate for buying Euros since February this year, ahead of a raft of potentially dangerous UK data due out over the next 3 days. The Pound is also up against the Canadian, Australian and New Zealand dollars, and flat against the US Dollar.