The pound is strong against the euro this morning, reaching a 10-week high as yesterday’s better-than-expected inflation data gave sterling a boost.
It’s a different story against the dollar, however, which has strengthened against both the pound and the euro. This follows the Federal Reserve’s press conference yesterday, in which officials had a more ‘upbeat’ tone surrounding the economic outlook.
Although US interest rates were left unchanged, as expected, the Fed’s projections indicate that they could be raised earlier than expected.
In Europe, inflation rate figures will be released this morning, which are expected to come in higher than the European Central Bank’s target.
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