eur-bank-notes-magnifying-glass - EUR

The pound euro (GBP/EUR) exchange rate is treading water on Tuesday after losses yesterday.

The Euro is supported by hawkish ECB commentary after Isabel Schnabel said that the central bank was considering a 50 bps hike in May.

Recent data has been supportive. German IFO business climate improved again in April to 93.6, calming recession fears further.

The pound edged lower yesterday in quiet trade with a lack of fresh fundamentals to help the pound higher.

Today attention is on BoE’s Broadbent who could give further clues over the the central bank’s next move for rates as inflation remains in double digits.