GBP/EUR Exchange Rate Holds Near Two-Week High Amid Interest Rate Expectations

The Pound to Euro (GBP/EUR) exchange rate held close to its two-week high on Tuesday, August 11, as traders waited for key economic releases later in the week.

At the time of writing, GBP/EUR traded at €1.1701, little changed from the start of the day.

The Pound's (GBP) performance was largely flat, with Sterling holding its ground due to expectations that the Bank of England (BoE) could raise interest rates before the end of the year.

UK government bond yields climbed above 5% on Tuesday, as renewed uncertainty in the Middle East triggered a sharp rise in oil prices and put upward pressure on interest rate expectations.