The Pound to Euro (GBP/EUR) exchange rate traded in a tight range on Tuesday as a lack of economic data and cautious market positioning kept movement limited.
At the time of writing, GBP/EUR was holding near €1.1580, little changed on the day.
Pound to Euro (GBP/EUR): 1.15811 (+0.07%)
Pound to Dollar (GBP/USD): 1.35425 (+0.09%)
Euro to Dollar (EUR/USD): 1.16936 (+0.02%)
DAILY RECAP:
The Pound (GBP) traded without a clear direction on Tuesday as markets reopened after the Easter Bank Holiday in a subdued mood.
A lack of fresh UK economic data limited momentum, while attention remained on upcoming local elections.
Investors remained cautious amid concerns that a weak showing for the government could trigger renewed political uncertainty, with UK borrowing costs edging higher in anticipation.
Meanwhile, the Euro (EUR) also struggled for direction as Eurozone data was thin on the ground.
With few external drivers, including limited movement in the US Dollar, the single currency remained rangebound alongside Sterling.
GBP/EUR Forecast: PMI Data and ECB Commentary in Focus
Looking ahead, the final services PMI readings for the UK and Eurozone are expected to provide the next catalyst for GBP/EUR.
If UK services activity is confirmed to have strengthened while Eurozone activity contracted, the Pound may gain an edge over the Euro.
However, any revisions to the preliminary figures could prompt sharper movement.
EUR investors will also monitor remarks from European Central Bank (ECB) policymakers, with any signals of support for future rate hikes potentially offering some backing to the common currency.
For Sterling, political developments remain in focus, with the upcoming UK local elections likely to influence sentiment and direction in the near term.
