Sterling outperforms euro but drops against dollar

<p>The pound is up against the euro but down against the dollar.</p>

The sterling rose in value when compared to the euro yesterday (April 23rd), although it suffered a fall against the dollar.

Worries about faltering Chinese growth drove investors to liquid currencies such as the dollar and the yen over the pound, reports Reuters.

James Hughes, senior market analyst at Alpari, stated any gains in the value of sterling due to economic data coming from the UK are going to be temporary.

"In the short term, investors are more comfortable in driving it lower towards $1.5210," he said.

Sterling was down 0.4 per cent on the day at $1.5237, falling further away from its April high of $1.5412, though it continued to perform well against the euro and was trading at 85.25 pence.

The pound is currently the subject of a fierce political debate in the UK, with the Scottish National Party wanting to keep sterling should Scotland declare independence and the UK government claiming this would not be possible.

Learn about the sterling and forex trading at City Index.

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