euro-bank-notes - EUR

The pound euro (GBP/EUR) exchange rate is edging lower after 2-days of gains.

The euro is rising ahead of the ECB rate decision where the central bank is expected to raise interest rates for an 8th time to 3.5%.

The central bank is expected to downwardly revise its growth forecasts and investors will be watching to see if the ECB gives any clues as to when it could be concluding the hiking cycle.

The pound has been supported this week by stronger than expected labour market data and a rebound in growth in April.

The BoE is expected to hike rates next week by a further 25 bps.