The Pound Sterling to Euro Exchange Rate was in the region of 1.1838 as of 10:40 GMT
Sterling remained slightly stronger against the ‘Greenback’ on Tuesday as investors awaited the publication of UK inflation data.
Before the nation’s consumer price index was published currency strategist Paul Robson commented; ‘There is a downside bias to inflation because of global inflation trends and a stronger exchange rate. You might have a squaring of the market’s long Sterling-Dollar position on a lower-than-expected consumer-price inflation number’.
Economists expected consumer prices to rise 2.2 per cent in November, year-on-year, following the same annual gain in October.
However, with prices climbing by 0.1 per cent month-on-month rather than the 0.2 per cent expected, the CPI was up 2.1 per cent on the year.
1 Euro is currently worth 0.8444 pence
After the data was released the Pound trimmed its gain against the ‘Greenback’.
The pace of UK inflation is now at its slowest for four years.
The result prompted this response from Robson; ‘Slightly softer-than-expected CPI inflation plays negative for Sterling. This gives the Bank of England more room to keep rates low. The fall in inflation seems more about the timing of known utility price hikes and once the market trawls through the data they’ll realise that it’s only likely to be a temporary undershoot.’
With Bank of England Governor Mark Carney due to address lawmakers in the House of Lord’s Economic Affairs Committee later today the Pound was initially little changed against the Euro.
However, after ZEW economic sentiment surveys for Germany and the Eurozone smashed expectations Sterling went on to slip against a boosted common currency.
Tomorrow sees the release of UK employment data and the minutes from the latest Bank of England policy meeting. Positive results could help the Pound recover losses, although the FOMC announcement will still be weighing on the market.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6296 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1838 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.8239 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9738 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6134 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8444 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5472 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5071 >
(As of 10:40 GMT)
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