The Pound has fallen vs the Euro even after UK inflation came out at 3%.
This could increase the chances of the Bank of England raising interest rates at their next meeting on 2nd November but central bank governor Mark Carney spoke shortly after the speech and this caused the Pound to fall.
Carney avoided the subject of whether the Bank of England will hike rates in a fortnight and we saw the Pound fall by over a cent vs the single currency from the high to the low of the day.
On the continent the European Central Bank also released higher than expected inflation figures at 1.3%. This means that the QE programme which currently adds €60bn to the economy is working and may be tapered which means reducing the monthly amount.
This helped the single currency to strengthen against Sterling and with Europe due to discuss trade talks starting on Thursday we could see a lot of volatility coming towards the end of the week.
Later this morning UK unemployment figures are due to be released and they have been extremely positive recently but it will be UK Average Earnings which are likely to be the main focus on Sterling Euro exchange rates.
If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on firstname.lastname@example.org and I will endeavour to get back to you as I can.