The euro has strengthened by as much as 1% against sterling over the past 24 hours, while remaining broadly static against the US dollar.
There hasn’t been much data for the markets to get excited about this week, but the rise has been on the back of last week’s interest rate rise, plus the hope that Europe’s energy crisis might be less bad than first thought. Wholesale gas prices have stabilised and there are hopes that prices could fall significantly.
Speeches by various ECB interest rate setters have convinced the markets that they are serious about tackling inflation, while the Bank of England is being seen to equivocate.
EUR/GBP past year
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