The Pound Euro exchange rate (GBP/EUR) is edging lower in early trade as it continues to consolidate following Monday’s steep sell off. The pair trades -0.07% at €1.1067.
The Pound remains under pressure as England enters its third lockdown and a double dip recession is almost certain. A GDP contraction is expected in Q4 2020 and Q1 2021.
Attention will now turn to the service sector PMI which is expected to confirm a slight contraction at 49.9, whereby 50 separates expansion from contraction.
Eurozone service sector PMI for December is expected to confirm the flash estimate of 47.3.