The pound euro (GBP/EUR) exchange rate is holding steady above $1.17, after a flat performance last week.
The pound is hovering around 5-month highs, supported by bets that the BoE won’t start cutting rates soon. BoE’s Andrew Bailey is due to speak later.
This week sees UK unemployment data and inflation data, which could influence GBP.
The euro is struggling amid bets that the ECB could start cutting rates soon. ECB chief economist Philip Lane is due to speak today.
His comments come after German inflation cooled to a 2.5 year low. However, the economic outlook for Germany was also downwardly revised by economists to 0% in Q1 2024.