The Pound Euro exchange rate is pausing for breath after surging 1% last week. The pair hit a 2-month high of €1.1227, before closing the week at €1.1211.
Comments by BoE Governor Andrew Bailey that the central bank could still do plenty to support the UK economy, despite interest rates being so low offered support to sterling. Today is a bank holiday in the UK so the Pound could lack direction.
German inflation data will be in focus. Analysts’ are expecting consumer prices to decline -0.2% in August compared to the previous month. This would be a slight improvement on July’s -0.5%. The data comes after ECB’s Philip Lane said that the central bank will adjust monetary policy if needed to boost inflation.