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

The pound euro (GBP/EUR) exchange rate is heading higher after losses last week.

The pound is rising as the market mood improves and ahead of a speech by BoE chief economist Huw Pill.

His comments will be listened to carefully after BoE governor Andrew Bailey said last week that the central bank was near peak rates.

The euro is under pressure as attention turns to the ECB rate decision this week. The decision is still up in the air as the economic outlook for the eurozone deteriorates but as inflation remains 2.5 times the ECB’s target level.

Italian industrial output is due to show a -0.3% MoM decline.