Pound to Euro Exchange Rate Stuck as Services PMI Data Looms

The Pound to Euro exchange rate remains rangebound due to lack of strong domestic drivers for both currencies.

The absence of major UK and Eurozone economic releases kept trading subdued, with GBP/EUR edging modestly higher on Tuesday to around €1.1674, up approximately 0.1% on the day.

A better market mood provided some support for Sterling, which also benefited from higher energy prices increasing expectations of another interest rate hike later this year from the Bank of England.

The Eurozone's single currency came under slight pressure from a firmer US Dollar and was also affected by recent heatwaves in Europe, posing risks to agriculture, energy generation, and key shipping routes.