The Pound Euro (GBP/EUR) exchange rate is climbing for a fourth consecutive session.
The UK is administering covid vaccinations at the faster rate per capita than any large country and noticeably quicker than in Europe. Optimism is growing that the UK will be among the first countries to reopen its economy.
UK CPI data could drag on demand for the Pound. Expectations are for a month on month decline of -0.4% in lockdown January, after rising by 0.3% in December.
The Euro came under pressure on Tuesday after the US Dollar rose sharply as US treasury yields jumped.
The Euro ended lower despite better than forecast Q4 GDP data and German ZEW sentiment numbers.