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Maybe sterling isn't rallying at all, just weakening at a slower rate than the euro at the moment. Or am I being cynical 

You could well be right SirTK. Euro has been weak on Greece's bailout troubles.

Conventional wisdom is indeed that the currency markets (in other words, the lads who gamble on exchange rate movements) don't like uncertainty and so the opinion polls in Britain should be making them bet on Sterling falling. I've been assuming that Greece admitting its fiscal problems has caused them to concentrate their attention on much larger prey. I've never understood how the common currency was supposed to work when there was no common fiscal policy, but I put that confusion down to me not being an economist and so pretty stupid when it comes to such complicated matters. On a purely selfish level, I'm pleased with how things are going for the Euro at the moment. It will be interesting to see which of the PIIGS the speculators go for next, how long the uncertainty lasts and how close we get to the supposedly unthinkable fantasy of one or more countries withdrawing from the Euro. Or perhaps my economic ignorance means I'm seriously underestimating the sophistication of the currency gamblers and the true cause of the recent Sterling-Euro movements is that the speculators don't see much difference in the economic prospects for Britain no matter which party (or parties) form the next government? Al

The hole in the bottom of the euro sink is bigger than  the hole in the bottom of the sterling sink - at the moment. Just beware that Oil is priced in dollars!!

Euro just dropped to 86.06p

I think that we need a crystal ball to guess what is going to happen with currencies in the future.