A very marginally higher than expected print from this morning’s whole of Euro zone Consumer Price Index inflation number provided the single currency with a boon during early trading today. Analysts had been anticipating a result of 0.7% from the annualised CPI number, so the showing of 0.8% raised the hopes of investors holding euro-denominated assets that the European Central Bank may not choose to further loosen its monetary policy in the near-term. The Pound Sterling to Euro exchange rate is trading up +0.15% at 1.21242 GBP/EUR. A trio of German IFO business surveys, also published this morning, added to the upside pressure on the eurozone unit, with the latest Business Climate, Current Assessment and Expectations element of the closely-monitored print beating expectations. The fallout saw the Pound euro exchange rate drop to as low as 1.2065 GBP/EUR; a similarly strong showing from tomorrow morning’s German GDP numbers could see Pound Euro exchange rate settle back below the 1.2000 GBP EUR threshold once more. Elsewhere, the Pound came in for a bout of sustained support a short time ago thanks to the announcement from the UK government that it is set to implement the findings of a recent report from Oil Industry expert Sir Ian Wood. In a rare event, the British government held today’s cabinet meeting in Aberdeen – the oil capital of mainland Britain. The collected UK policymakers took the opportunity to reveal that Ian Wood’s recommendations – which he estimates will add ‘at least £200bn’ to the UK economy over the next two decades – will be effected in full. With the majority of respondents in recent opinion polls stating that they will vote ‘no’ to an independent Scotland, the development bodes well for the future prospects for both the British economy and for the Pound. This month’s US Consumer Confidence survey, due out at 1500hrs today, is the next tier one risk event of note in the markets. A print of above the expected 80.0 could further hinder the Greenback, given that it would make a further tapering of QE by the Fed more likely. - See more at: http://www.currencynews.co.uk/forecast/20140224-8680_pound-euro-exchange-rate-forecast-germany-send-gbp-eur-lower.html#sthash.qIUnQeqC.dpuf

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