GBP/EUR exchange rates have remained relatively steady throughout the day with the pound slightly gaining against the Euro to the tune of 0.3%. As expected the Bank of England kept its base rate on hold at 0.5% and the European Central Bank followed 45 minutes later by raising rates, as many expected, by 0.25% to 1.25%. Following the release we saw an initial surge in the Euros favour however Jean Claude Trichet’s subsequent comments have paired back the Euros gains.
The next data set of note will be tomorrow’s UK Producer Price Index at 09:30, this is a measurement of price changes of goods produced by UK manufacturers and a positive reading is generally good for the pound.
