Pound to Euro Stalls Despite Stronger Growth Figures

The Pound to Euro exchange rate saw a slight recovery on Thursday after touching a one-month low overnight, thanks in part to stronger-than-expected Eurozone GDP data.

However, the Bank of England's decision to maintain a cautious policy outlook kept pressure on the GBP, making it difficult for the pair to recover unless Eurozone inflation disappoints.

The Pound to Euro (GBP/EUR) rate was trading around €1.1663, marginally higher on the day, while the Pound to Dollar (GBP/USD) and Euro to Dollar (EUR/USD) rates saw slight declines of 0.06% and 0.07%, respectively.

Investors had anticipated a slightly more hawkish tone from the Bank following renewed US strikes on Iran and rising oil prices, but Governor Andrew Bailey struck a cautious note, saying there was little evidence that inflation was becoming embedded in the UK economy.