The EU commission announced that a bail out plan to help Greece avoid further restructuring their debts was imminent, allowing the euro to rise from year lows against the US dollar and sterling to track accordingly. This allowed the pound to appreciate against the greenback bringing it off one month lows.

Sterling

With little local economic indicators released, sterling was left to follow developments within the eurozone. As a result, its performance moved off the back of extremely volatile trading. Sterling edged up against the US dollar, tracking gains made by the euro following the EU's Greece bailout plan announcement.

US Dollar

The US dollar fell from one year highs against the euro, as statements from the EU appeased investors that decisive action was imminent to help recently "junk"-rated Greece, and prevent any further credit downgrading from within the fragile eurozone. The greenback had been benefiting from risk adverse trading, and became the main benefactor of safe haven flows following the credit downgrading of Greece, Portugal and, most recently, Spain.

Euro

The eurozone held market's attention, as downgraded counties and a depreciating single currency left the EU commission with little option but to announce the imminence of a fiscal recovery plan to help debt laden Greece, and prevent the rot from spreading further through the eurozone member states. Investors were comforted by signs that a recovery package could reach €110 billion over three years, a marked increase from the earlier reported €45 billion deal. This would allow Greece to avoid restructuring its heady debts.

Japanese Yen

The yen also took a battering with improved market confidence following the EU's announcement and weighing on the safe haven yen.