The Pound Euro (GBP/EUR) exchange rate is edging cautiously higher, holding above €1.14.

The National Institute of Economic and Social Research (NIESR) think tank downwardly revised its GDP outlook for the British economy this year to 3.4%, down from 5.9%. The downgrade is a reflection of the impact of the third national lockdown.

The Pound awaits UK Q4 GDP data on Friday. Until then the UK economic calendar is quiet.

Both German Industrial Output and Eurozone Investor Confidence disappointed in the previous session highlighting the damage caused by the resurgence of covid in the region.

Today German trade data will be in fovus in addition to sentiment drivers.