The pound quietly marked a four-month high against the euro today after a higher-than expected UK inflation report had some thinking that the Bank of England may consider raising interest rates. The euro has also been muted lately with concerns over the growing debt in Greece and Italy.
On Tuesday, Bank of England Governor Mervyn King noted that inflation was “likely to pick up markedly in the first half of this year” and could exceed the Bank’s mandated target of 2 percent growth during the second half of the year.
BBC News