GBP/EUR: Brexit Extension & EU Trade Tariffs In Focus

The Pound Euro (GBP/EUR) exchange rate is in consolidation mode. The pair is trading a few pips lower on Wednesday snapping a two day winning streak.

The Pound has been well supported recently as covid cases decline and the covid vaccine drive accelerates.

Attention will turn to the release of the final service sector PMI for January which is expected to confirm a deep contraction of 38.8.

The Eurozone service sector PMI is expected to confirm a less severe contraction of 45. However inflation data for the bloc will be more closely watched and could boost demand for the common currency. Expectations are for +0.5% MoM, up from -0.3%.