LONDON, Jan 3 (Reuters) - Sterling rose to a two-week high against the euro on Tuesday - the first day of London trading in 2017 - after a survey suggested British manufacturing growth climbed to a two-and-a-half-year high last month.
The monthly purchasing managers index (PMI) for the manufacturing sector rose to 56.1, the strongest reading since June 2014, exceeding all forecasts in a Reuters poll, which pointed to a decline to 53.1.
The pound strengthened to 84.675 pence per euro after the data, its strongest since Dec. 22. That left it up 0.6 percent on the day, having traded at 85.01 pence before the results of the survey were released.
Against a broadly stronger dollar, sterling turned positive on the day to trade as high as $1.2290, up from $1.2258 before the data.
Britain's FTSE 100 drifted down from record highs as sterling rose, but remained up 0.4 percent for the day. (Reporting by Jemima Kelly and Alistair Smout; editing by Patrick Graham)