The Pound-to-Euro exchange rate entered the new week above 1.16, a level upon which its grip could solidify over the coming days if an action-packed UK economic calendar can be navigated without upset, although international factors will pose up and downside risks.
The British Pound was seen advancing against the Euro amidst fresh signals from Government that all Covid-19 restrictions will be lifted on June 21 as originally planned and some analysts said if there were to be delay it would be of little consequence to the currency.
The Pound-to-Euro exchange rate could be volatile with an upside bias this week if a recent across-the-board uplift in Renminbi exchange rates leads the Peoples’ Bank of China (PBoC) to buy non-Dollar currencies in a bid to fend off appreciation pressures coming from the Dollar.
The Euro is struggling to find any notable strength ahead of this week's key meeting of the European Central Bank (ECB) which leaves investors cautious as they await the central bank's update on the outlook for monetary policy in the bloc, due on Thursday.
Pound Sterling retains a broadly robust stance on global foreign exchange markets and is the second-best performing currency in the G10 complex over the course of the past month, but it is the Euro that looks set for a period of short-term outperformance.