GBP/EUR: Will UK Service Sector PMI Drag Pound Lower?

The Pound Euro (GBP/EUR) exchange rate is rising for a third straight day.

The Pound reached a fresh 23 month high on Tuesday after retail sales jumped 4.6% compared to 2019, according to the BRC. Barclaycard data also pointed to the British consumer spending 12.2% more in December than two years.

Separately Prime Minister Boris Johnson is coming under pressure to resign amid the growing scandal of a party at 10 Downing Street in lockdown.

The Euro was supported by a weaker US Dollar after Fed Powell’s testimony and by comments from the new Bundesbank President.

German wholesale inflation data will be watched closely.