The pound euro exchange rate (GBP/EUR) held steady on Monday after losses across the previous week.

The pound fell last week on rising expectations that the Bank of England could start cutting interest rates as soon as June after a less hawkish than expected BoE monetary policy meeting.

This week is a quiet week as far as UK economic data is concerned, leaving sentiment to drive the pound

The euro ticked higher last week supported by improving German Ifo business sentiment. However, gains have been limited after comments from ECB chief economist Philip Lane, who said that wage growth was showing signs of slowing. This removes another hurdle for the ECB to cut interest rates.