The Pound Euro (GBP/EUR) exchange rate is heading southwards, paring some of Wednesday’s gains.
The Euro came under pressure on Wednesday after German industrial output unexpectedly declined in May. Industrial output dropped -0.3% MoM, well short of the 0.5% rise forecast.
The data adds to evidence that supply chain bottlenecks are starting to slow the economic recovery.
German trade data is in focus today, in addition to a speech from Christine Lagarde on the ECB special strategy meeting.
The Pound is trading lower amid growing concerns over the easing of covid restrictions on 19th July, as covid cases surge.
The UK economic docket remains light again today, although Friday’s sees things picking up with the release of UK GDP data for the second quarter.