The exchange rate is currently at 1.17, back to its position on Tuesday before the UK’s inflation report.
After the UK’s positive inflation report – showing that inflation will hold steady – Pound Sterling climbed to 1.18 against the Euro.
Now the pound has seen a slight dip, but overall the currency remains in a relatively good position.
The positive position of the pound post Article 50 meant inflation held steady, a development that will make the UK attractive to investors.
Tuesday’s report predicted March’s inflation figures.
It is encouraging for traders if the pound looks strong, and sets the currency in the position to rise further.
The British currency had suffered turmoil recently.
Thankfully the pound was strengthened, as there have been hints of a rate hike.
This week could see the Sterling soaring since the UK’s inflation report has impressed traders.
If inflation rises much faster than expected, bets that the Bank of England will be pressured into tightening monetary policy will increase, leading to stronger demand for the Pound.
Bank of England officials have so far maintained that the bank will not react to inflation caused by Pound value.
As well as Britain’s inflation report, the April economic sentiment surveys for Germany and the Eurozone from ZEW will be published this week.
This is also likely to have a massive impact on the Pound to Euro exchange rate.
Last week, the market closed with the currency buying €1.17 and standing to gain more strength against the euro, according to analysts.
Independent research firm Capital Economics has tipped the Bank of England to raise interest rates early in 2018.
