Sterling Back Through 1.20 On Retail Figures- Euro Inflation Tomorrow Could Be Even Better

The pound has rocketed up today against the euro on the back of UK retail figures that were much better than expected.  The recent bad weather had been expected to put a dampener on the figures but they actually reinforced the view that the UK is back on the track to recovery.  The pound is unlikely to keep rising massively as there is still no sign of the Bank of England bringing forward interest rate rises expected in 2015 however it may go up a little further against the Euro if inflation in the Eurozone is low.  We have German inflation tomorrow and wider EU figures on Monday- if they are particularly weak then the markets might react by selling off the Euro because they expect the ECB will have to do something to avoid the risk of disinflation becoming deflation.  If you are buying Euro then watch this data very closely, and if you would like help with a currency transfer then please feel free to email Colm at cmg@currencies.co.uk or call me on 01494 787 478