Following yesterday’s positive gains we have seen the pound lose ground against the Euro further this afternoon. I do feel, however, that GBP/EUR rates hinge on tomorrows key interest rate decisions from the UK and Europe. Personally I believe the UK will keep rates on hold and this will have little impact, however of interest will be that of the ECB. Many analysts expect Europe to raise rates by 0.25% and I firmly believe this has been priced into the market (hence Euros recent strong gains) and should rates be raised, this too will have little impact other than minor Euro gains. However if we see the ECB keep rates on hold then I feel the Euro may have been overpriced and will lose ground following the announcement.