The Pound has continued to strengthen against both the Euro and Dollar after news that the UK offered concessions on fisheries in last week’s trade negotiations with the EU. The market is now looking towards the Bank of England’s interest rate announcement and accompanying statement due at midday, although no major changes are expected.

The Euro has lost ground against both the Pound and the Dollar over the past 24 hours. Eurozone final consumer price inflation figures due at 10am are forecast to show a decline of 0.2% which may prompt the European Central Bank to introduce further stimulus in the near future to boost inflation.

The Dollar has strengthened overnight against the Euro as the Federal Reserve gave no indication of introducing further monetary stimulus. In addition, the central bank upgraded growth forecasts suggesting that the economic impact may not last as long as originally thought. US unemployment claims are due at 1:30pm which will likely cause some short-term volatility to the greenback.