Pound Surges as Strong US Dollar Weighs on Euro
The Pound to Euro exchange rate has reached a two-week high as the strong US Dollar puts pressure on the Euro. At the time of writing, GBP/EUR is trading at €1.1681, representing a 0.2% gain on the day.
The Euro weakened due to its inverse relationship with the US Dollar, which strengthened ahead of the Federal Reserve's interest rate decision later this week. The US central bank is expected to increase rates from 3.75% to 4%, providing strong support for the 'Greenback'.
With little economic data to bolster the Eurozone economy, the single currency struggled to find a foothold and remained exposed to losses. In contrast, the Pound has been relatively quiet, with investors holding back ahead of several potentially market-moving events in the UK.