The pound has been given a huge boost this morning after UK inflation figures came out stronger than forecast showing just under the Bank of England target rate of 2%. The official figures showed a rise in June to 1.9% from 1.5% in May.
The Bank is tasked with keeping inflation steady at 2% and this has increased speculation the BofE may hike interest rates sooner than has previously been thought, given the economy is recovering, house prices are rocketing, and the unemployment rate is dropping sharply.
The next set of unemployment figures come out tomorrow morning, and given Mario Draghi has been hinting at further action from the European Central Bank that could weaken the Euro, it looks as the future for pound euro rates is looking good.
However it is always difficult to predict when we will peak and currency doesn’t move in straight lines (remember we were at similar exchange rates of 1.26 in my last post and then the rate dipped in between). If you do want to secure your exchange rate at the best price possible then feel free to contact Colm at firstname.lastname@example.org and I would be happy to help.