Pound to Euro Exchange Rate Hits Two-Week High as Jobs Data Looms

The Pound to Euro exchange rate has been climbing, reaching a two-week high on Monday as the US Dollar firmed up ahead of the Federal Reserve's interest rate decision later in the week. The Euro came under pressure due to its strong negative correlation with the US Dollar.

A lack of economic data from the Eurozone left the Euro struggling to attract support, making it vulnerable to losses. Meanwhile, the Pound traded without a clear direction as investors waited for upcoming UK data releases.

The key release this week is Tuesday's UK jobs data, which is expected to show British unemployment rising to 5% and wage growth cooling down. If the labour market data points to weakness, it could put pressure on the Pound ahead of the Bank of England interest rate decision on Thursday.