Euro Inflation Data Looms Large for Pound

The Pound to Euro exchange rate is expected to come under pressure if inflation in the Eurozone accelerates, potentially leading to more aggressive interest rate hikes from the European Central Bank.

Last week, the GBP/EUR exchange rate fluctuated between a one-week high and low, with Sterling trading at €1.1664 by the end of the week.

The UK's productivity may have strengthened in recent years, according to analysis from the Resolution Foundation thinktank, which initially supported the Pound on Monday.

However, a weaker-than-expected CBI distributive trades survey and growing concerns over rising energy bills dented Sterling later in the week.