GBP/EUR: Brexit Nerves Weigh On Pound

The Pound Euro (GBP/EUR) exchange rate is holding steady around €1.1850 after strong gains yesterday.

The Pound was boosted again on Tuesday by rising expectations that the BoE will hike interest rates before the end of the year.

All eyes are on UK CPI inflation data which is expected to confirm that consumer prices rose by 3.2% in September in line with August.

Eurozone CPI inflation data will also be under the spotlight, and is expected to confirm the 1.9% flash estimate, up from 1.6% in August.

The data comes as ECB Chief economist Philip Lane warns the market against [ricing in an interest rate which the central bank isn’t contemplating.