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According to Reuters, the single currency decreased to 85.81 pence, down from its two-and-a-half month high of 86.72 pence hit yesterday, forex traders might be interested to note.
Sterling was still up versus the dollar thanks to support gained following the Bank of England's (BoE) January meeting yesterday, which showed increased backing for a 25 basis point rate rise.
Chris Walker, currency strategist at UBS, described the market as reading the minutes as "hawkish" rather than in line with gross domestic product (GDP).
He added: "[Mervyn] King's speech after the GDP print and the weak GDP itself suggest that the analysis of the minutes should be put into context a bit."
This comes after the pound rose against both its US counterpart and the single currency yesterday afternoon as Bloomberg reported the BoE finds itself in a difficult position regarding whether or not to up the interest rate.
Posted by Greg Secker
