GBP/EUR Exchange Rate Slips Below 1.17 as Rally Pauses

The Pound to Euro exchange rate (GBP/EUR) has fallen below 1.1700 after failing to build on Monday's advance to two-week highs.

The pound is struggling to find a fresh catalyst for further gains, despite its substantial yield advantage and benign carry-trade conditions.

Risk appetite remained steady, with low volatility encouraging more interest in carry trades. UK equities initially fell but reversed their losses to trade slightly higher.

Data releases are scarce until Thursday's second-quarter GDP figures, while unemployment and inflation data will be released next week.