GBP/EUR: Pound Heads Higher As EU To Mull Over Brexit Extension

The Pound Euro (GBP/EUR) exchange rate is moving higher after closing below €1.1950 last week.

The Pound dropped on Friday, putting the pair in the red across the week. The pound fell on weaker than forecast retail sales data. Sales dropped -3.7% MoM in December as Omicron and inflation surged.

UK PMI data will be in focus. After the service sector saw activity slow in December it is expected to pick up again in January.

Eurozone PMI data will also be in focus. Expectations are for business activity to tick lower in January to 52.6. 50 is the level which separates expansion from contraction.