New data has revealed that British manufacturing is expanding at its fastest annual pace since the mid 1990s.
The euro has come under pressure in the last day as concerns grow about the financial solvency of (among others) Spain and Portugal.
German industrial production increased 1.8% in January following a bad Christmas 2010 according to figures released this morning. However the euro has failed to benefit on these reports.
The US dollar held ground against sterling and the euro on Tuesday in spite of increased confidence in the global outlook.
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The US dollar regained its status as a safe haven on Monday as civil unrest broke out in Saudi Arabia.
The euro has hit 4-month highs against the US dollar this morning following strong EU investor confidence figures.
The US dollar fell on Friday following the release of positive non-farm payroll figures for February.
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