DailyBubble News
DailyBubble News

GBP/EUR Flat Ahead Of UK GDP

The Pound to Euro exchange rate remained stable at €1.2498, as the Pound struggled to gain investor support following the Bank of England’s decision to keep interest rates unchanged at 5.25%. Despite some policymakers favoring a rate cut, Governor Andrew Bailey expressed optimism about the UK’s progress towards meeting the 2% inflation target.

On the other hand, the Euro had a mixed day with limited data releases. Speculations of potential ECB interest rate cuts put pressure on the Euro, as domestic banks in the Eurozone began to ease their monetary policy. ECB Vice President Luis de Guindos’ speech further fueled rate cut bets, leading to uncertainty in the currency market.

Looking ahead, the UK’s GDP figures are set to be released, with economists expecting 0.4% growth in the first quarter of 2024. Positive data could boost the Pound amid signs of economic recovery. Meanwhile, speeches from ECB policymakers may influence the Euro’s performance, with any dovish commentary potentially signaling monetary unwinding in June.

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