David Cameron is Prime Minister

The political events of last night, confirming David Cameron as Prime Minister at the head of a Conservative-Liberal coalition, have given the Pound a boost. We now have the best rate for buying Euros since June 2009.

Today’s Bank of England Inflation Report, published at 10.30, will give some insight into the UK economy and the Bank’s forecasts for inflation for the rest of the year. It is a potential ‘banana skin’ for the Pound – any downbeat news could bring exchange rates down in the current volatile environment.