GBP/EUR back below 1.21. Watch out for German inflation figures tomorrow morning (Mike Vaughan)

GBP EUR Exchange Rate: Weekly Review July 16  

Sterling has retraced this afternoon as the Bank of England held its base interest rates steady at 0.5% as most had expected. Looking at tomorrow and watch out for German inflation figures at 07:00. Levels are forecast to fall from 1.2% to 1% and could put pressure on the Euro tomorrow morning. With Germany the backbone of the Euro Zone these figures will be closely monitored as the single currency area is currently facing pressure from deflation.

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