GBP/EUR Exchange Rate Surges on Stronger UK Data

The Pound to Euro (GBP/EUR) exchange rate has been buoyed by recent UK economic data, pushing it above the 1.1650 support area and towards 1.1680.

Stronger-than-expected housing and manufacturing numbers gave Sterling a boost, as Nationwide reported an increase in house prices of 0.2% for August, with annual growth at 1.6%. The UK's manufacturing sector also saw its final reading revised to 51.7 from 51.5, with business confidence reaching a six-month high.

However, the Euro has struggled to capitalize on higher inflation and expectations of an ECB rate hike, as elevated European energy prices continue to weigh on the regional outlook.