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The Pound Euro ( GBP/EUR ) exchange rate traded sideways last week, hovering just below its recent 18-month high, as Sterling attracted support but the single currency resisted further losses. At the time of writing, GBP/EUR was trading at €1.1981, virtually unchanged on the week. The Pound (GBP) strengthened on Monday as UK borrowing costs continued to decline following the previous week’s Autumn Budget. Sterling gained further ground on Tuesday after the UK and EU reached an agreement to ease trade restrictions on food and animal products. However, a rise in UK gilt yields capped the currency’s advance. The Pound then lost momentum midway through the week, with a downward revision to the UK’s final October services PMI putting pressure on Sterling.
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