The pound to euro exchange rate continued to dip today after a difficult start to the week.
Yesterday the pound struggled against the euro, which was strong thanks to a struggling US dollar.
The pound fell slightly from 1.126 to 1.124, and today it has fallen further to 1.1225.
TorFX currency analyst Laura Parsons said: “The pound edged lower against some of the majors on Tuesday following the release of the UK’s inflation data.
Pound to euro exchange rate: GBP slips to 1.1225 EUR
Pound to to euro exchange rate: GBP slips to 1.1225 EUR
“Consumer price pressures dipped in December, as expected, but the core measure slipped by more than expected – weighing on hopes that the Bank of England (BoE) might adopt a more hawkish approach to monetary policy.”
Thankful political discord in Germany has led to the pound’s performance increasing slightly throughout the day yesterday.
Ms Parsons said: “However, Sterling managed to end the day slightly stronger against the euro as Germany’s coalition deal suffered a setback, with the Berlin branch of the Social Democrats voting against forming a grand coalition with Angela Merkel’s CDU/CSU.
“The GBP/EUR exchange rate could extend gains today if the Eurozone’s consumer price index confirms that inflation moved further away from the European Central Bank’s (ECB) 2 per cent target.
Pound to euro exchange rate: Yesterday the pound struggled against the euro
“Disappointing Eurozone construction output figures would also be euro-negative.”
Yesterday Ms Parsons predicted inflation data would result in volatility for the UK currency.
She also claimed that Sadiq Khan had undermined the pound.
She said: “The pound, meanwhile, was undermined by London Mayor Sadiq Khan, who offered a fresh warning over the potential negative impact of a no-deal Brexit scenario.”
Pound to euro exchange rate: Ms Parsons predicted inflation data would result in volatility
The Mayor Sadiq Khan has also caused outrage as protesters claimed he should be arrested after this Brexit speech.
Sadiq Khan’s Brexit speech saw the Labour Party member mock Trump’s “very stable genius” comments.
Khan said: “It is a pleasure to be here even though we were distracted by the actions of what some would call very stable geniuses.”
A recent employment rate increase in the Eurozone has caused issues for the pound.