The pound euro (GBP/EUR) exchange rate is rising, adding to last week’s gains.
The pound is rising ahead of Thursday’s Bank of England decision, where rates are expected to remain unchanged at 3.75% amid still sticky inflation at 3.4% and rising wage pressures.
However, losses in the euro are limited after stronger German retail sales and improving eurozone manufacturing data.
German retail sales rose 0.1% MoM in December after falling -0.5% in November.
Eurozone manufacturig PMI rose to 49.5 in January, up from December’s nine-month low of 48.8. Focus now turns to eurozone inflation and the ECB meeting later this week amid cautious investor sentiment across global financial markets.