Pound Under Pressure Ahead of Bank of England Decision

The Pound-to-Euro exchange rate has been under pressure in recent days, but it may find some support from easing energy prices and a hawkish message from the Bank of England.

Last Monday, GBP/EUR was trading around €1.1694, down almost 0.2% on the day.

The Euro has found modest support as hopes for a renewed US-Iran ceasefire triggered a sharp fall in European gas prices, while optimism over de-escalation prompted a decline in energy prices amid hopes key shipping routes could soon reopen.

Meanwhile, the Pound traded in a relatively narrow range as investors continued to monitor developments in the UK bond market. The benchmark 10-year UK gilt yield slipped back below 5%, reaching its lowest level since Andy Burnham entered Downing Street.