Pound to Euro weakens ahead of Bank of England policy makers testimony

Daily Currency Update

The Pound has traded lower against the Euro since last Friday. The EU wage growth data and the Federal Open Market Committee minutes are on Wednesday, which is expected to provide an outlook on the interest rate cycle in the US and provide further guidance on the US Dollar trading direction.

The Pound to US Dollar exchange rate sees some notable recovery as the US market returns from the long weekend with the US Dollar Index trading higher around 104.40.

Markets expect Andrew Bailey to speak further about the approach to interest rates in line with the recent robust wage growth, inflation, and household spending following the recent data releases from the UK.