German Business Confidence Boosts EUR Against GBP

The Pound to Euro exchange rate has retreated from its earlier attempt to break above 1.1700, as stronger-than-expected German business confidence data provided fresh support for the Euro.

According to ING, the UK's economy will likely see a GBP/EUR retreat to 1.15 over the next few months due to no expected Bank of England interest rate increases.

The latest 7-year bond auction saw its yield increase to 4.76%, representing the highest yield in over 20 years, which will persist government debt-interest concerns.