The core inflation rate for the eurozone this morning has come in at 1.3%, unchanged from last month suggesting that inflation is stabilizing in the region. The euro strengthened to a four-month high against the pound yesterday, as inflation in the UK continues to fall and Mervyn King suggested that further interest rate cuts may be necessary.

Positive figures from the eurozone have helped strengthen euro rates for currency transfer, also buoyed by stronger retail sales figures in the US. German retail sales however, have come in weaker this morning, falling by 1.7% for the first time in seven months as rising unemployment led consumers to cut their spending. The euro is expected to remain firm in the medium term against the US dollar and pound.

Currency transfer rates for the euro are currently at GBP0.8885 and USD1.4682.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.