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Forex traders have got behind the pound meaning the euro dropped to 85.70 pence after hitting a five-week high of 86.35 yesterday, Reuters reports.
Support from the pound came after better than expected UK trade data for January was announced and there were disagreements between eurozone leaders about how to fix a debt crisis.
One London-based spot trader said: "Some folks out there are trying to pick the top in EUR/GBP but with real money yet to buy and model accounts feeling emboldened, the dips should be shallow."
This comes after the European Central Bank last week hinted at a possible interest rate rise - and this speculation was partly why the single currency gained against the pound yesterday, as there were rumours these levels may increase before the Bank of England ups its base rate.
Posted by Greg Secker
