The Pound Euro (GBP/EUR) exchange rate is building on gains from the previous session. The pair has rallied over 1.3% across the week.

The BoE kept monetary policy on hold as expected. However, the central bank upgraded the outlook for the UK expecting pre-pandemic growth to return by the end of the year thanks to the rapid vaccine programme. The BoE also distanced itself from the imminent use of negative interest rates.

The Euro remains under pressure amid slow vaccine deployment, a strong US Dollar and despite strong data. Retail sales beat forecasts growing 2% MoM in December.

German Factory order up next.