GBP/EUR: UK Government Politics Drive Pound vs. Euro

The Pound Euro (GBP/EUR) exchange rate is edging higher at the start of the week.

The Pound managed to pick up at the end of last week despite threats of a trade war between the UK and the EU.

Today all eyes will be on Prime Minister Boris Johnson as he is expected to delay the final step to re-open the UK economy by 4 weeks.

The Euro came under pressure towards the end of last week after the ECB stuck by its dovish stance. The central bank insisted that it was still too soon to discuss tapering support.

There is little by way of high impacting economic data due to be released this week. Eurozone inflation figures on Thursday are expected to be the highlight.