GBP/EUR: Pound Heads Higher As EU To Mull Over Brexit Extension

The pound euro (GBP/EUR) exchange rate is  rising for a fourth day, a heads towards €1.1550.

The euro is edging lower with Spanish inflation data in focus. Consumer prices in Spain are expected to cool to 3.5% YoY, from 4.1%. Cooling inflation takes some pressure off the ECB to hike rates aggressively.

Eurozone consumer confidence data is also due and is expected to hold steady at -17.4, while economic sentiment is set to ease to 98.

The pound has been supported by an improving outlook. US retail sales rose by more than expected at 0.5% MoM.

Expectations are for the BoE to continue hiking interest rates again in June as inflation remains over four times the central bank’s target.