The pound has strengthened this morning against both the euro and the dollar, hitting a new 2021 high against the euro. This follows data released this morning showing that inflation rose to 4.2% in October, well above expectations.
The higher-than-expected reading has increased expectations that the Bank of England will raise interest rates sooner rather than later. This prospect has boosted the pound and the markets will now be listening for any comments from BoE officials regarding interest rates.
Following a surge in retail sales last month, the dollar is stronger against a basket of currencies this morning.
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