Pound Steady Amid Expectations of Higher Interest Rates

The Pound Euro (GBP/EUR) exchange rate was steady on Wednesday, as investors awaited key economic data from the UK and Europe.

A lack of fresh UK releases left the Sterling rangebound, with expectations of higher Bank of England interest rates offering some support to the currency. However, rising oil prices strengthened bets that the BoE could tighten monetary policy later this year.

The Euro (EUR) also struggled to establish a clear trend, as Germany's final consumer price index for July confirmed that inflation in the Eurozone's largest economy accelerated from 2.3% to 2.8%. However, the figures were unchanged from the preliminary estimate, limiting their influence on EUR.