The pound euro (GBP/EUR) exchange rate is heading lower, falling below €1.1750.
The euro ended the previous week modestly lower after the ECB raised interest rates for the first time in 11 years.
However, PMI data showed the business activity contracted in July which doesn’t bode well for GDP data.
Today German IFO economic sentiment is expected to be released later and is expected to fall.
The pound rose last week after retail sales and business activity data came in better than expected. Retail sales fell by -0.1% MoM in June, ahead of the -0.3% forecast.
Brexit troubles could weigh on the pound after the EU sues the UK after the UK government cleared a bill scrapping some of the Norther Ireland protocol.