Pound Under Pressure as Bank of England Decision Looms

The Pound to Euro exchange rate has been trading in a narrow range near a four-week low as investors await Thursday's Bank of England interest rate decision and key Eurozone economic data. The current exchange rate is around €1.1672, having recovered modestly from an earlier 26-day low of €1.1660.

The Pound (GBP) has been subdued due to a quiet UK economic calendar and caution ahead of the Bank of England's policy announcement. Despite expectations that interest rates will remain unchanged, uncertainty remains over how the Bank will respond to recent volatility in global energy markets and its implications for inflation.

On the other hand, the Euro (EUR) has also traded in a relatively narrow range amid a lack of fresh Eurozone economic data. However, investors are turning their attention to Thursday's preliminary Eurozone GDP figures and Germany's latest inflation data, which could shape expectations for European Central Bank policy.