The pound-euro (GBP/EUR) exchange rate is holding steady below €1.19 at the start of the week.
The pound is struggling for direction amid concerns over the UK growth outlook. US investment banks have lowered their GDP forecast for the UK.
Data on Friday supported the view that the UK economy stalled, with the PMI lackluster and the jobs market weak.
The euro is unchanged as German IFO business climate rose slightly to 85.1 in January from 84.7 in December. However, this is still below November’s reading.
The ECB rate decision is on Thursday, and the central bank is expected to cut rates.