Euro-Pound Falls as Rabobank Warns of Limited Gains Ahead of UK Budget

The Euro-Pound exchange rate has fallen to 0.8548, down 0.27%, after stronger UK GDP figures were released.

Rabobank sees limited scope for lasting Pound Sterling gains ahead of the October Budget, despite the Bank of England's potential interest-rate hike.

The bank argues that over 100 basis points of policy tightening are already priced in on a 12-month view, leaving little room for further sustained gains against the Euro.

Rabobank also highlights pressure on household spending from energy bills and potential tax increases, alongside a looser labour market that could restrain wage-driven inflation.