Data released this morning revealed that UK inflation rose to a 30-year high in January to 5.5%. This exceeded market predictions and was largely driven by housing and utilities.
Despite rising expectations for another interest rate hike from the Bank of England, the pound is slightly weaker against the euro this morning.
The single currency has risen following the apparent de-escalation of tensions between Russia and Ukraine. However, although Russia have said that they are leaving, they are yet to provide proof of this.
The Federal Reserve will release the minutes from its latest monetary policy meeting later. Any surprises regarding the timing of interest rate hikes could impact the dollar.
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