The Pound Euro (GBP/EUR) exchange rate is holding steady below €1.20.

The Pound came under pressure in the previous session after the latest composite PMI data highlighted surging prices across the economy. The composite PMI eased to 59.7, down from 59.9, but ahead of forecasts.

Today UK retail sales should shed some light on whether rising prices are affecting consumer habits.

The euro advanced following the EU leader’s summit and better than expected PMI data. The composite PMI, a good gauge of business activity eased to 54.5, down from 55, but still ahead of the 54 forecasts.

German IFO business sentiment data today is expected to show that confidence is falling amid rising prices and the ongoing war.