2nd April 2008 Currency Update: Sterling on the rise today against the euro

Sterling ticked up versus the euro this morning as investors looked ahead to mortgage data for clues on whether the Bank of England will cut interest rates next week or next month.

The main focus, though, remained on interest rate expectations, with bets of a near term rate cut scaled back slightly after data on Tuesday showed manufacturers hiking prices at record rates, while input costs hit a 13-year peak.

Mortgage approvals, seen as a forward-looking gauge of the housing market, are expected to match December's series low of 72,000 in February.

Mortgage lending is expected to hit a 2-year low of £7.3 billion, while consumer credit is seen easing on the month, to £0.9 billion. Right now Interbank is at 1.2683 with Natwest offering 1.2130. source IFX