The Pound to Euro exchange rate rose from near 18-month lows as Sterling featured among the better performing advanced economy currencies in London trade on Thursday, and it could be likely to remain supported above 1.1611 through a looming interest rate decision from the European Central Bank.

The Pound to Euro exchange rate lost altitude in early trade on Wednesday as the US Dollar unravelled afresh in an apparent response to the latest in the US-China trade conflict, and a proposal in Washington for a tax on foreign holdings of American assets to be imposed on some jurisdictions.

Speculative traders should consider selling the Pound to Euro rate on rallies in anticipation of a renewed decline to 1.1409, according to the JPMorgan FX desk.

The Pound to Euro exchange rate fell to 19-month lows last week in what was its largest five-day decline since September 2022, however, the pair could stabilise in the days ahead and may even have scope for a partial rebound if the latest UK inflation figures help the Sterling bond market onto a better footing.