Investing.com - The euro hit the day’s highs against sterling on Thursday after economic reports underlined the contrast between strong growth in the euro zone and Britain’s weakening economy.
EUR/GBP was up 0.33% to 0.8900 by 05:08 AM ET (10:08 AM GMT) from around 0.8899 earlier.
In the euro zone, data on Thursday showed that private sector output rose at the fastest pace in six-and-a-half year in November, with companies reporting a surge in output and hiring.
The euro zone composite output index, which measures the combined output of both the manufacturing and service sectors rose to 57.5, the highest level since April 2011.
France had a particularly strong month, outpacing Germany for only the fourth time in more than five years.
German growth also remained strong, indicating that its economy can see out political gridlock that could soon lead to fresh elections.
In the UK, data confirmed that the economy grew 0.4% in the third quarter, but the report also showed that the economy remained reliant on household spending.
British households are suffering a spending squeeze as inflation continues to outstrip wage growth amid a fall in sterling since last year’s Brexit vote.
Sterling was a touch lower against the dollar, with GBP/USD sliding 0.13% to 1.3304.
The euro was at one-week highs against the dollar, with EUR/USD rising 0.17% to 1.1840, moving closer to the one-month high of 1.1859 reached last week.
The dollar remained on the defensive after the minutes of the Federal Reserve's latest meeting showed "many participants" were concerned inflation would stay below the bank's 2% target for longer than expected.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018.
Trade volumes remained relatively thin on Thursday with financial markets in Japan closed for a holiday. U.S. markets were to be closed for the Thanksgiving holiday.