GBP/EUR Slumps to Near-Two Week Low Amid Rising Gilt Yields

The Pound to Euro exchange rate has fallen to its lowest level in nearly two weeks due to rising gilt yields, which have reached their highest level since August 2007. At the time of writing, GBP/EUR was trading at €1.1648.

The UK's lack of economic data on Wednesday left the Pound without much support, while concerns about rising government borrowing costs saw GBP struggle against stronger peers.

However, if stronger UK services data supports Sterling in Thursday's PMIs, it could lead to a recovery in the exchange rate. The Eurozone's latest producer price index may also impact the pairing, potentially boosting the Euro and interest rate hike expectations if producer price inflation surges.