The Pound Euro (GBP/EUR) exchange rate is edging a few pips higher building on two straight sessions of gains.

Stronger than forecast UK labour market data helped to buoy the Pound in the previous session. Whilst unemployment rose to 5% for the first time in almost 5 years. However, the rate was still better than feared.

The ECB have once again hinted at concerns over the exchange rate prompting the Euro to sell off sharply on Tuesday.

German GFK consumer confidence data will be in focus today. Expectations are for a deterioration in confidence in the coming month amid rising covid cases and tighter lockdown restrictions.

The data comes following German IFO data earlier in the week which showed that business confidence was also declining.