This morning has seen the pound surge across the board after the latest round of inflation figures were released at 0930 (GMT).
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Markets had been expecting the UK inflation figure to rise from 1.8% to 2.1%, but with the actual reading coming in at 2.3% it has given the pound a much needed boost following yesterday's drop.
As you can see from the graph below the GBP/USD cross has risen over a cent so far today, with the currency pair climbing from $1.2342 to its current level of $1.2459.
GBP/USD graph
Figures released by the Office for National Statistics (ONS) confirmed inflation had risen to 2.3% last month, up from 1.8% in January, with the ONS stating that rising food prices and fuel were the major drivers in pushing the inflation reading higher.
The inflation rate is at the highest we have seen since September 2013 and takes us past the Bank of England's 2% target level. Inflation levels in the UK have been climbing after Junes referendum result caused the pounds value to fall, which in turn made imported goods more expensive to buy.
This morning's news will back up MPC member Kristen Forbes recent calls for an interest rate hike in the near future, and if Bank of England governor Mark Carney drops any hints over monetary policy when he speaks in half an hour (1030 GMT), we could see the pound rise even further over the course of today.
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