The Pound Euro (GBP/EUR) exchange rate is treading water below €1.17 after losing -0.1% in the previous session.

The Pound edged lower on Monday after the manufacturing PMI revealed that factory activity growth slowed in July, after powering ahead in May and June.

UK inflation is also expected to tick as high as 3.9% early next year according to the NIESR think tank.

With little on the economic calendar covid developments could drive the Pound.

The Euro found support from upbeat German retail sales and manufacturing data on Monday. The bloc’s PMI was upwardly revised to 62.8, from 62.6 in the flash estimate.

Eurozone PPI inflation data could impact the common currency today, with analysts expecting 1.4% MoM increase.