The Pound Euro exchange rate is extending gains from the previous session.

Surging inflation has prompted speculation that the BoE could move to hike interest rates sooner. UK CPI inflation jumped to 3.2% YoY in August, up from 2% in July. The data comes following upbeat labour market data earlier in the week.

Analysts now expect the BoE to raise rates in mid-2022.

The Euro trades under pressure mainly owing to the stronger US Dollar, shrugging off upbeat Eurozone industrial production numbers.

ECB President Christine Lagarde is due to speak shortly.