Is Sterling making a comeback?

Sterling extended gains against the Euro
this morning while stocks were little changed after data showing Britain's
manufacturing sector had slowed but prices soared, with no let up in
inflationary pressures. The Chartered
Institute of Purchasing and Supply/NTC purchasing managers' index slipped to
51.0 in April from 51.3 in March. Although marginally above the consensus
forecast of 50.8, it was the weakest reading since January and the second
weakest in the past two years. The output price index rose to 61.9 from 60.6 in
the previous month. Output price inflation has scaled a fresh series high every
month of 2008 so far. Right now Interbank is at 1.2799 with Natwest offering 1.2106.

source: IFX