GBP/EUR: Brexit Nerves Weigh On Pound

The Pound Euro (GBP/EUR) exchange rate is moving slowly higher, adding to small gains yesterday.

The Pound drifted higher in the previous session paring losses from last week. The pound lost ground last week even as the BoE raised interest rates by 25 basis points.

Separately the domestic political situation appears to be stabilising, as Prime Minister Boris Johnson continues to hold his position.

There is no high impacting UK data due today in what is expected to be a quiet day.

The euro fell on Monday, after strong gains last week. The euro fell despite ECB policy makers adopting a more hawkish tone.

ECB President Christine Lagarde, however, was more cautious, said that any moves to to tighten monetary policy will be gradual and data driven.