GBP/EUR @ 1.19 again as UK currency is hit by all-round Euro strength

The British pound to euro exchange rate is 0.2 pct lower than it was at last night's closing level. The exchange rate is currently quoted at 1.1925.

The British pound is still looking strong against the euro however; while we may be off recent highs the UK currency is 1.8 pct higher than it was this time last month.

(About these quotes: The above are wholesale figures. Your bank will subtract a discretionary spread to derive profit when delivering or transferring your money. However, an independent FX prover will beat your bank's quote and look to deliver up to 5% more currency. Find out more here).

Confirmation that the UK economy is steaming ahead can't propel GBP/EUR higher

The pound was unable to advance against the euro this morning despite some rather good economic data being released.

UK Services Sector PMI for September came in at 60.3 a tad down on August’s near seven-year high of 60.5, analysts had expected a reading of 60.

The strong data rounds off best quarter since Q2 1997.

"Businesses in the vast service sector reported an  ongoing growth spurt in September, expanding at a  rate just shy of August‟s recent high. The buoyant  data follow similar upbeat surveys of the  manufacturing and construction sectors, and  collectively the surveys suggest the economy will have expanded by as much as 1.2% in the third  quarter; its fastest growth rate since the pre-crisis days of 2007," says Chris Williamson, Chief Economist at Markit.

The British pound has recorded gains against a host of other currencies, however, a strong euro was not to be impacted.

Euro strength: The key theme on global FX

The euro was boosted yesterday following the ECB interest rate decision and a resolution to the political impasse in Italy.

At his press conference following the interest rate decision the ECB President Draghi sounded less dovish than the market expectations giving the euro a shot in the arm.

"President Draghi made clear that the fragmentation between core and periphery should be attacked and the ECB is ready to use all instruments to sustain liquidity including LTROs," says Ipek Ozkardeskaya at Swissquote Research.

In Italy, PM Letta won the confidence vote in the lower Parliament further releasing sell pressure on the single currency.

The upside momentum in the single currency is widely predicted to remain a key feature of today's currency market session.

The pound to euro exchange rate could test 1.19 again as a result.