GBP/EUR: Euro Rallies vs Pound On Policy Tightening Optimism

The pound-euro  (GBP/EUR) exchange rate held steady on Friday but rose modestly across the week.

The euro fell this week after the ECB cut interest rates for a second time and lowered its growth forecast.

The economic calendar next week is relatively quiet, leaving sentiment to drive the EUR.

The pound was unchanged on Friday amid a quiet calendar. UK consumer inflation expectations eased to 2.7%, down from 2.8%, which is on the right trajectory for the BoE.

The central bank will meet next week but is not expected to move on rates.