The Pound Euro (GBP/EUR) exchange rate is pushing northwards as the new week kicks off, paring losses from last week.
The Pound is picking up after falling across the previous week. Rising expectations of a rate hike by the BoE lifted the Pound at the start of last week. However, softer than forecast inflation and a surprise fall in retail sales forced investors to question BoE expectations.
This week is a quiet week on the economic calendar. Attention will be on Chancellor Rishi Sunak’s Autumn Budget.
The Euro will focus on the ECB meeting later in the week. With other central banks across the globe considering rising interest rates, the ECB appears out of step.
Today German IFO business sentiment data is expected to show a continued fall in confidence amid ongoing supply chain bottlenecks.