The Pound Euro (GBP/EUR) exchange rate is treading water after two days of gains.

The Pound spiked higher in the previous session following the release of upbeat industry retail sales data. The data revealed an unexpected surge in November sales.

Today the Chancellor will lay out the government’s tax and spending plans across the coming year. The OBR’s GDP forecast and government borrowing figures will be under the spotlight.

The Euro slipped after The German finance minister downgraded German the GDP outlook for this year. The downgrade came following a similar down grade by the Bundesbank at the start of the week and ahead of German GDP data on Friday.

German GFK consumer confidence figures are due to be released and show a decline in morale.