Sterling vs Euro has continued its fall this morning following the UK’s Quarterly Inflation Report.
Bank of England governor Mark Carney has suggested that inflation may fall below 1% during the next 6 months which means an interest rate rise for the UK has been pushed further back.
UK inflation is currently at a 5 year low at 1.2% and governor Carney thinks it may not hit 2% for three years. With an interest rate hike now being pushed back towards the end of 2015 this has encouraged investors to sell Sterling which is one of the major reasons for this week’s currency movements.
The ECB monthly report is due shortly and any negative comments could lead to some volatility on GBPEUR exchange rates this morning.
Tomorrow is likely to be the biggest mover with the release of both inflation numbers as well as Eurozone GDP.
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