The Pound Euro (GBP/EUR) exchange rate is heading lower on Tuesday after small gains at the start of the week.
Strong German inflation, at 6% failed to boost the Euro. However, attention is on Eurozone inflation which is also expected to rise firmly to 4.5% in November, up from 4.1%.
The ECB continue to insist that inflation is transitory.
Covid continues to be a key theme as Omicron spreads across the globe. The markets are still waiting to see if the variant is more severe than Delta.
There is no high impacting UK data so COVID headlines could be the main driving force.