But instead the exchange rate continued to slide in favour of the EU.
TorFX Currency Analyst Laura Parsons said: “The pound plummeted to a five-week low against the euro on Tuesday as the UK’s latest inflation report showed a sharper-than-forecast acceleration in consumer price pressures.
“With wage growth expected to stagnate, rising inflation could really hamper consumer spending and restrain domestic growth in the months ahead. GBP/EUR accordingly fell to a low of €1.162.
“The euro, meanwhile, was supported by improved economic sentiment surveys for the Eurozone and Germany.”
Further contributing the to the euro’s strength is the election of the new French president Emmanuel Macron.
Investors have been more confident buying the EU currency after the centrist claimed the vote over far right candidate Marine Le Pen.
Yesterday the euro reached six-week highs against the pound and six-month highs against the sliding US dollar.
Sterling’s decline has already been priced in by investors, with forecasts the currency will dive further over the next few months.
The exchange rate first fell on Thursday after a warning from the Bank of England.
Interest rates were again put on hold, which saw the pound slide against many major currencies.
Sterling’s next test comes in the form of more UK economic figures out today.
Ms Parsons said: “If today’s UK wage data shows that growth in average earnings slowed in the three months through March, the pound could extend losses.”
