The Pound Euro (GBP/EUR) exchange rate had a volatile week, hitting a two-week low before the Bank of England’s interest rate decision. At the time of writing, the GBP/EUR rate was around €1.1622, staying steady from Friday’s levels. The Pound struggled due to lack of economic data and expectations of a rate cut by the BoE. The central bank ultimately kept rates unchanged, but a dovish voting split hurt Sterling. Despite positive GDP data, the Pound remained subdued.
The Euro fluctuated due to mixed economic releases from Germany. While factory orders declined, exports and retail sales exceeded expectations. Better-than-expected industrial production data further supported the Euro. The end of the week saw minimal data releases for the Eurozone, leading to a lack of clear direction for the currency.
Looking ahead, data releases from the UK and Eurozone will likely impact the GBP/EUR exchange rate. UK labor data and German inflation figures are expected to influence market sentiment and could lead to increased volatility in the pairing.