Euro at 89p as UK hike unlikely

The euro was trading over 89p against sterling as expectations widened that the Bank of England won’t raise UK interest rates anytime soon.

Evidence of the strengthing eurozone economy also helped support the euro which has now gained 14% against sterling in just over a year since the UK voted for Brexit.

Factories across the world powered into July, providing evidence that economic momentum has carried through into the second half. Growth in the eurozone remained buoyant, British manufacturing recovered in July from a seven-month low and Chinese factory activity unexpectedly expanded.