Will the Pound Strengthen any further against the Euro? (Daniel Johnson)

GBPEUR Sinks Again with Virus Case Surge

Sterling rose in value against the Euro yesterday, predominantly due to the news there could be a takeover on the cards for Tata Steel. This should give investors a bit more faith in British commodities. We have seen Consumer Price Index (CPI) and Producer Price Index (PPI) released this morning. Theses are both key measures of inflation. CPI data has come in better than expected and there was a slight decline in PPI. This has caused a small Spike in Sterling favour.

If you are a buying Euros I would be looking to take advantage of current market levels, there are too many factors against Sterling at present which could bring it back to the 1.23s or lower.

Thursday brings the Bank of England (BOE) Interest Rate decision, I expect no change on both the rate and the Monetary Policy Committee (MPC) vote, I think it is very unlikely we will see any changes in the vote until after the EU referendum. There should be little change in GBP/EUR after this event.

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