The Pound Euro (GBP/EUR) exchange rate is trading at €1.1035, extending losses for a fourth consecutive session.
The Pound has been under pressure across the week as covid cases surge, hitting a record high of 62,000 on Wednesday. UK PM Boris Johnson warned that releasing from lockdown will be a slow gradual process, which in itself has negative economic implications.
Recent data showed that the UK economic activity only saw a subdued return to growth in December following November’s lockdown. This is set to deteriorate further in the coming months.
The Euro continues to be supported by a weaker USD whilst shrugging off weaker data.
A slew of data is expected including Eurozone inflation, retail sales and German factory orders.