The Pound Euro (GBP/EUR) exchange rate is heading lower on Friday paring some gains from the previous session.
The Pound benefitted from both fiscal and monetary stimulus in the previous session. Firstly, the BoE added £150 billion to its bond buying programme.
Secondly the Chancellor Rishi Sunak extended the generous but costly furlough scheme until March. His move came after the BoE predicted that unemployment would reach 8% by the second quarter next year, almost double today’s 4.5% level.
The Euro surged versus the USD, although fell versus the Pound. German factory orders rose for a fifth straight month, although momentum showed signs of slowing.
German industrial productions data will be in focus.