GBP/EUR Exchange Rate Recovers, But Remains Below Crucial 1.17 Level

The Pound to Euro exchange rate has recovered some of its losses from Wednesday's session, but still remains below the crucial 1.1700 level.

GBP/EUR traded around 1.1669 during Thursday's afternoon session, up approximately 0.2% on the day after falling to the 1.1650 area the previous day.

The latest UK inflation figures had a muted impact on Sterling, as markets continued to assess the balance between persistent energy-driven price pressures and softer domestic wage and employment trends.

ING expects relatively high UK yields to continue providing some near-term support for the Pound, stating that 'our call is that the BoE does not need to hike again, but that the realisation of that may not weigh on sterling until later in the year.'