The Pound Euro (GBP/EUR) exchange rate is heading lower at the start of the week.
The Pound failed to drive higher versus the Euro last week despite encouraging labour market data and despite UK inflation skyrocketing to 3.2% YoY in August. The date lifted the prospect of the BoE hiking interest rates sooner than initially anticipated.
That said an unexpected decline in retail sales and supply chain issues have raised concerns over the health of the economic recovery.
The BoE rate decision is due on Thursday.
The Euro showed resilience versus the Pound with final inflation for August confirmed at 3% YoY a decade high.
The Eurozone economic calendar this week is quiet with PMIs and the German elections next weekend in focus.