The pound euro (GBP/EUR) exchange rate is holding steady after falling for three consecutive days.

The euro has been supported by hawkish ECB commentary this week. Ollie Rehn said that significantly more rate hikes were needed to rein in inflation.

Recession fears in the eurozone are easing as gas prices drop and recent data has been better than expected.

The pound has drifted lower amid a lack of fundamental drivers and amid a dire economic outlook as inflation remain elevated and household incomes are squeezed.

UK GDP data is due tomorrow and is expected to confirm the UK economy is heading into recession.