Weaker Sterling on weaker inflation

Sterling has weakened against the Euro after its 10 months high falling back below 1.15.

UK inflation data was weaker than predicted at 2.5% against an expected 2.7% causing the pound to drop against all major currencies. We expect the Central Bank to raise interest rates by 0.25% at the next meeting in May but if they decide to postpone the increase then it’s very likely that the pound could fall further.

UK retail sales data will be released at 8.30am today that could either have a positive or negative movement for Sterling. You may want to consider our contract options to secure your funds as the GBPEUR rate is still strong since last May 2017.

Don’t let falling rates eat into your budget by considering a Forward Contract option. Lock in a rate today with a small deposit to get the most for your funds and to avoid risk of the rates weakening.

Contact the Currency Index team today for more information.