euro-bank-notes - EUR

The pound euro (GBP/EUR) exchange rate is heading southwards after two days of gains.

The euro was supported yesterday after hawkish comments from ECB official Francois Villeroy. These came after a report earlier in the week that pointed to a less hawkish ECB.

The minutes to the ECB December meeting are due to be released and could shed light on the path of future rate hikes.

The pound gained yesterday after UK inflation fell modestly to 10.5%, but stayed in double digits.

The data, along with strong wage growth data earlier in the week, raised expectations of a 50 basis point rate hike from the BoE in February.

There is no high impacting UK data today.