Posted by Zeb BhamSterling edged higher versus the single currency in foreign exchange trading ahead of an emergency meeting between heads of government in Brussels today (October 26th) relating to the eurozone's debt crisis.According to Reuters, analysts are growing increasingly uncertain that the discussions will lead to a firm plan about how to resolve the region's issues being implemented.The summit follows a previous meeting held at the weekend and will be attended by the likes of German chancellor Angela Merkel, French president Nicolas Sarkozy and British prime minister David Cameron.Analysts may be hoping that at its conclusion they are provided with some answers as to how the deficit will be tackled.Yesterday, the euro traded at 87.10 pence, although offers as high as the month's best for the pound - 88 pence - were noted.Meanwhile, sterling was at $1.5970, a decline on the level seen the previous day and down from $1.6040 - a six-week best seen earlier in trading.Commenting on the outlook, a spot trader based in London is quoted as saying: "Everyone was getting a bit carried away, thinking there will be more progress than there actually will be at the European Union summit."I think there is too much event risk and I reckon smart money is starting to buy dollar on dips."Forex dealers may also be impacted by the latest figures from the British Bankers Association (BBA) indicating that in September net mortgage lending was 1.6 per cent.David Dooks, statistics director at the BBA, said: "Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty."He added that cash reserves are being added to by organisations when they can, while noting that some investments may be being held up by ongoing concerns about the strength of the UK's economy.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site