GBP/EUR: Pound Rallies Ahead Of BoE Announcement

The Pound Euro exchange rate (GBP/EUR) is advancing at the start of the week, pushing over €1.250.

The upbeat mood in the market and an accelerating vaccine rollout programme in the UK is lifting the Pound, overshadowing disappointing retail sales data on Friday.

Looking ahead, Bank of England’s Andrew Bailey will be speaking at the Davos online World Economic Forum. Investors will be listening closely for any comments regarding negative interest rates.

The Euro will look towards German IFO business sentiment data due later. A strong reading could aid the recovery in the common currency. Analysts forecast a for a pick-up in business expectations although the current assessment is expected to deteriorate.