GBP/EUR Exchange Rate Edges Lower Despite Hawkish BoE Signals

The Pound (GBP) held its ground on Thursday as hawkish remarks from Bank of England policymaker Clare Lombardelli boosted Sterling sentiment.

Lombardelli warned that persistent inflationary pressures stemming from the energy price shock will likely necessitate a tightening of monetary policy, which could signal an interest rate hike in November.

The Pound to Euro (GBP/EUR) exchange rate was trading at around €1.1625 on Thursday morning, down modestly from the start of the session but still supported by the BoE's hawkish signals.

The Euro (EUR) traded with limited upside potential as its strong negative correlation with the US Dollar continued to weigh it down amid strengthening Federal Reserve interest rate hike speculation.