The pound to euro exchange rate is 0.222% lower on the day with GBP to EUR at 1.1369 EUR. The pound to dollar exchange rate is 0.430% higher with GBP USD at 1.6116. Markets are higher in morning trade and the atmosphere has proven conducive to euro buying. "Sterling has also jumped on the bandwagon early morning and is trading around 60 pips higher versus the dollar at 1.6120. As traders’ taste for risk is very much on the up today, safe havens such as the dollar appear less attractive and in line with rising equity markets we could see sterling push higher," says Simon Denham at Capital Spreads. Elsewhere on the currency markets we see that RBS is maintaining a bearish view on the euro: "With EUR/USD continuing to show for the moment a fair degree of resilience to intensifying Euro-zone debt concerns, the point at which the currency really starts to be affected is likely to be when concerns over Spain and Italy start to meaningfully impact upon the ECB's tightening cycle," says a currency note from RBS. The note goes on to say that signs of slowing momentum in the core, as indicated by a continued divergence in the current conditions and expectations components of the German ZEW survey, and moderating inflation, will also ease the pressure of the ECB to hike rates. The RBS note goes on to say: "Thursday's EU Summit is likely to offer support for Greece, although a lack of any assistance for Spain or Italy may see the crisis worsen and so we continue to favour short EUR/USD exposure.

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