The Pound Euro (GBP/EUR) exchange rate is trading lower after recording strong gains across the previous week. The pair trades -0.1% at just below €1.11.
The Pound is slipping after British Prime Minister announced that the UK will go back into national lockdown on Thursday, as covid cases continue to surge.
Chancellor Rishi Sunak has extended the furlough scheme just hours before it was due to end. The BoE could ease monetary policy further on Thursday.
The Euro sold off sharply last week as France and Germany announced national lockdowns.
Manufacturing PMI data from both the Eurozone and the UK are in focus.