The pound to euro rate is 0.076% lower on the day with GBP to EUR at 1.1412.
GBP EUR continues to make strides upwards, attributable mainly to a weaker EUR/USD pair points out analyst Richard Driver at Caxton Fx.
"We are seeing strong euro to dollar flows amid the current uncertainty surrounding the US debt ceiling issue. There remains a sense that an agreement will be patched together just in time, but nervousness is building with every day that passes," says Driver.
The headline eurozone inflation rate is not forecast to move from its 2.7% mark this morning, but any surprise could well inform ECB monetary policy and provide some direction today. Given recent hawkish comments from ECB policymakers, the market will not need much encouragement to bring forward eurozone rate hike bets.
Sterling remains a highly unappealing currency and looks a little overextended at these levels, but should be able to maintain strength moving into the weekend. Pound to euro is currently trading at €1.14.
Pound to dollar
The pound to dollar rate is 0.208% lower with 1 GBP = 1.6298 USD.
A resurgent US dollar is weighing on this pair at present, ahead of the key US GDP figure.
A reading of UK retail sales data fell at its fastest pace in 12 months, which did sterling no favours yesterday. Consumer confidence data also undershot forecasts and showed an alarming contraction.
This afternoon is all about the crucial second quarterly US GDP figure. In line with downgraded growth forecasts, the figure is expected to show 1.7% (on annualised basis).
A poor figure here is likely to add to market tension and the dollar may well strengthen. This pair is trading at $1.63 and sterling may well remain under pressure today.
