Pound to euro exchange rate: Sterling volatile ahead of UK inflation update

POUND sterling remains volatile against the euro as the UK awaits an inflation and wages update.

Martin Lewis reveals how to get the best exchange rate

The exchange rate has climbed slightly to €1.103, up from €1.100 overnight. 

Sterling has endured a pervasive struggle against the euro as it remains volatile to political and economic events around the globe. 

Data out of the UK this week promises to be no different. 

Inflation results out today, coupled with wages data released tomorrow, could see the pound rise or fall.

Pound euro exchange rateGETTY

Pound euro exchange rate - sterling is volatile ahead of UK inflation and wages data

Forecasters have tipped consumer price pressures to rise for July to 2.7 per cent, up from from 2.6 per cent in June. 

The exchange rate would likely benefit from such a result. 

Laura Parsons, currency analyst at TorFX, said: “The pound recovered ever so slightly against the euro on Monday as a poor industrial production report for the Eurozone weighed on the single currency. 

“Today, GBP/EUR movement is most likely to occur in response to the UK's inflation report. 

Pound euro exchange rateXE

Pound euro exchange rate - sterling is buying a dismal €1.103

A positive move for the pound could come from Tuesday's inflation readings

Ian Strafford-Taylor

“An increase in consumer price pressures would bolster Bank of England (BoE) rate hike expectations and lend the pound support. 

“However, if inflation dips we could see the pound hit fresh multi-month lows against the euro.”

Currency experts have warned travellers of the importance in planning ahead when it comes to buying holiday money. 

Ian Strafford-Taylor, CEO of FairFX said: “A positive move for the pound could come from Tuesday's inflation readings.

Pound euro exchange rateGETTY

Pound euro exchange rate - sterling could benefit from an increase in inflation for July

“A higher figure will again cause markets to speculate that a rate hike could well be on the cards by the BoE later this year.

“As always, holidaymakers need to keep an eye on rates, and be smart with their holiday money. 

“It has never been more important to do your research and buy your currency when the pound moves in your favour. 

Mr Strafford-Taylor said even the smallest shift could could have a significant impact. 

He added: “Planning ahead and not leaving buying currency until the last minute will help your money go that much further when you head off on your well-earned break.”

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