The Pound Euro (GBP/EUR) exchange rate is declining for a second session and trades at €1.1325 at the time of writing.
All eyes are on the Bank of England rate announcement due today at 12:00 GMT. The central bank is not expected to alter monetary policy. Any chatter surrounding negative rates and the outcome of the central bank’s consultation into negative rates will be closely eyed.
However, the vaccine drive, falling covid rates and Brexit in the rear-view mirror, the outlook could be starting to improve.
An 11 month high in Eurozone inflation and the prospect of former ECB President Draghi forming a government in Italy has helped boost the common currency.
Eurozone retail sales will be in focus.