gbp-british-pound-coin - GBP

The Pound Euro exchange rate is extending gains for a third day.

The Pound extended gains on Thursday amid rising expectations that the BoE could lift interest rates sooner than initially expected, mid next year.

Today UK retail sales will be in focus. Expectations are for a rebound of 0.5% after sales declined sharply in July. Consumer confidence is still high and staycation spending is expected to have been elevated across the summer months.

The Euro has come under pressure from the strong US Dollar this week, although the common currency picked p off session lows in a report that the ECB could hike interest rates in two years.

Today sees the release of the final reading for August inflation.