GBP/EUR: Pound Stumbles vs Euro On Dovish Sounding BoE

The Pound Euro (GBP/EUR) exchange rate is adding to yesterday’s losses, trading -0.3% at €1.1043

The Bank of England is due to give its interest rate decision today, the day that the UK goes into its second lockdown. The central bank was not expected to move on rates but rumours this morning are suggesting that they could.

The BoE is expected to top up its QE programme by £100 billion. Growth forecasts are also expected to be downwardly revised. The BoE is not expected to move on negative rates.

He Euro was upbeat after composite PMI data showed that the Eurozone economy was performing slightly better than forecast.

German Factory orders will be in focus with month on month growth of 2% forecast.