Sterling slips as weak inflation data puts a question mark over a Bank of England rate hike (Joseph Wright)

GBPEUR Rejected by 1.17 Price Level Again

Those hoping the Pound would receive a boost this morning were left disappointed as this weeks key piece of economic data out of the UK failed to meet expectations.

The data released this morning at 9.30am showed that the rate of Inflation has surprisingly dropped over the last month, and this has lowered the chances of an interest rate hike from the Bank of England.

Many had expected to see the BoE look into raising rates in order to weather the negative effects on the UK economy of the increasing price of goods, especially as it emerged recently that wage growth within the UK has fallen to its lowest levels in four years.

Thursday could be a busy day for all markets as there will be a number of key releases across the board. There will be an ECB Monetary Policy Statement at around 1.30 this day which could have an impact on the Pound to Canadian Dollar rate.

On Friday there will be inflation data out of Canada which could also create movement between the GBP/CAD pair, especially if the figure comes out substantially different from the 1.1% expected for the month of June.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.