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GBP/EUR rallies on domestic data, Also aided by ECB whispers.
The Pound to Euro exchange rate rallied sharply on Tuesday after the single currency turned broadly lower alongside European government bond yields in the wake of a press report casting doubt whether the European Central Bank (ECB) will raise its interest rate as far as many had expected.
EUR boosted by another drop in gas prices, but now looking expensive say analysts.
The Pound to Euro exchange rate entered the new week near four-month lows but could have scope for a rebound and retest of 1.14 up ahead if the latest UK inflation figures lead the market to anticipate additional monetary 'tightening' coming from the Bank of England (BoE) sooner rather than later.
Pound Sterling has been hit by a fall in UK bond yields and the Euro continues a run of outperformance as investors brace for further interest rate hikes at the ECB.
The British Pound's recovery against the Euro could extend says an analyst at one of the UK's largest business payment providers.
The Pound to Euro exchange rate has appeared to be drawing a line under its December decline and could have scope to reverse some of its recent losses this week if global markets remain on the front foot and Sterling is able to navigate risks lurking in the domestic appointment book without upset.
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