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Euro close to unchanged against sterling

Euro close to unchanged against sterling
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Forex traders did not see a great deal of activity involving the euro against the pound this morning (December 24th).

According to Reuters, the former stayed mainly unchanged against sterling at 84.90 pence, just below a three-week high it managed last week of 85.53.

And Kenneth Broux, market strategist at Lloyds Banking Group, predicted there will be many risks for the pound going forward, stating it had suffered a poor December, losing ground on the majority of currencies.

He added: "The combination of the labour data, softer growth, the high public deficit and potential for problems within the coalition government are putting doubts in people's minds."

Some of the reasons for sterling's recent issues came from higher than expected UK unemployment data, meaning it has been under pressure.

But there was positive news for the pound yesterday afternoon as it managed to advance on the single currency as the latter shed 0.4 per cent.

Posted by Chris Weaver ADNFCR-1681-ID-800311685-ADNFCR