GBP Holds €1.17 Amid Wait for UK GDP Data

The Pound (GBP) held its ground against the Euro (EUR) on Tuesday, despite the lack of fresh UK economic data. The GBP/EUR exchange rate remained stable around €1.17, with investors waiting for key releases later in the week.

Expectations that the Bank of England could raise interest rates before the end of the year continued to support the Pound. This sentiment was reflected in UK government bond yields, which climbed back above 5% due to renewed uncertainty in the Middle East and higher oil prices.

The Euro, on the other hand, struggled to recover from its two-week low against the Pound, largely due to a quiet Eurozone economic calendar. However, it managed to resist further losses against Sterling, thanks to its inverse relationship with the US Dollar.