The pound rose against the broadly weaker EUR but fell against the USD to start the week. Sterling pushed higher against the single area currency this morning as a report showed that UK house prices jumped on September with investor seemingly looking for safer assets amid the turmoil in financial markets. However, the majority of sterling’s strength against the single area currency, which is widely under pressure, stems from the fact that EU leaders appear to have failed to offer a plan which would demonstrate how they will halt the region’s debt crisis and as Greece is on the brink of default. Today EU and IMF officials will meet with Greek Finance Minister Evangelos Venizelos to assess whether or not Greece is eligible for its next aid payment. The pound is lower against the broadly stronger USD, as risk aversion attributed to the uncertainty in the financial markets has prompted investors to flock to the greenback, as Swiss Franc and Japanese Yen have widely been disused as safe haven currencies as of late due to central bank interventions. Additionally, the pound is lower against the USD as this week’s Bank of England meeting minutes may open doors for more quantitative easing in the near term. The Fed also meets this week for its monthly two-day meeting which is scheduled to commence today.
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