As the European session progressed the Pound weakened against the Euro, hitting a two-week low against its common currency rival.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1547 as of 10:30 GMT
1 Euro is currently worth 0.8661 pence
Declines against the US Dollar were also consolidated as an absence of pertinent UK news led investors to focus on this week’s influential central bank policy meetings.
Later today the US Federal Reserve will gather for its latest highly anticipated round of fiscal discussions, and will announce its policy statement tomorrow.
This is followed by the Bank of England and European Central Bank’s rate decisions on Thursday.
The GBP/EUR exchange rate hit a low of 1.1533 pence per Euro
If the Federal Open Market Committee offers any indication of when the tapering of US stimulus will begin the market could experience extensive volatility.
Economists are expecting that the Bank of England will opt to keep rates at their current level and continue with the present amount of bond purchases.
Sterling also lost ground against the Euro as the common currency was supported by some unexpectedly positive domestic news.
Separate reports showed that Eurozone consumer confidence and economic confidence rose in line with expectations, and that a gauge of German consumer confidence unexpectedly climbed from 6.8 to 7.
The GBP/EUR pairing could experience additional movement in the hours ahead in response to German inflation data.
The main cause of volatility in the GBP/USD pairing is likely to be this afternoon’s US consumer confidence figures. Economists are expecting that consumer confidence declined from 81.4 to 81.3 in July. However, an upward surprise could see the Pound extend declines against the US Dollar.
While the BoE rate decision is the big piece of UK news this week, other domestic economic data to look out for includes tomorrow’s consumer confidence report and Thursday’s manufacturing PMI.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5329 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1547 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6903 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9173 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6516 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8661 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5915 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5214 <
(As of 10:30 GMT)
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