(RTTNews) - The sterling was mixed in early European deals Tuesday, edging higher against the euro and the Swiss franc while losing ground versus the lower-yielding dollar and the yen after an official report showed that the U.K. industrial production grew unexpectedly in August. U.K. industrial production increased unexpectedly by 0.2 percent in August from July, data from the Office for National Statistics showed today. Economists were expecting a 0.2 percent fall in production. Meanwhile, manufacturing output declined 0.3 percent month-on-month, following a 0.2 percent drop in July. The decline also exceeded the expected 0.2 percent drop in August. On a yearly basis, industrial production declined 1 percent in August, slightly smaller than the 1.1 percent decrease forecast by economists. On the other hand, manufacturing output grew 1.5 percent annually. The consensus forecast called for 1.6 percent rise for August. Meanwhile, the British house prices declined for the fifth consecutive month in August to 1.3 percent year-on-year in August, after falling 1.5 percent in July, data released by Department for Communities and Local Government showed today. On a monthly basis, house prices increased a seasonally adjusted 0.6 percent during the month, faster than July's 0.3 percent growth. In the equity front, European stocks are trading in negative territory as investors await a decision on whether Slovak lawmakers will approve the expansion of the euro zone bailout fund. On the eve of a vote in Parliament scheduled later today, Slovakian prime minister threatened to quit if the vote fails. All 17 nations in the euro must approve the reforms to the European Financial Stability Facility (EFSF) agreed by leaders in July. Malta's parliament unanimously approved the expansion of the powers of the European bailout fund on Monday night, leaving Slovakia the lone euro zone nation, which is yet to vote on the proposal. Thus far, the U.K. FTSE 100 index fell 0.7 percent, Germany's DAX dropped 0.64 percent and France's CAC-40 index slipped to 0.74 percent. The pound appreciated by more than 0.4 percent to reach as high as 0.8699 against the euro around 5:25 am ET from Asian session's 5-day low of 0.8736. The pair held steady thereafter and is currently quoted at 0.8708. On the upside, the sterling may find resistance around the 0.8620 level. The European Central Bank President Jean-Claude Trichet said today that the Eurozone debt crisis has reached a systemic dimension and must be tackled decisively. In a hearing on the European Systemic Risk Board, or ESRB, before the Committee on Economic and Monetary Affairs of the European Parliament, Trichet urged national governments to act together swiftly as further delays may aggravate the situation.

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