Sterling hit a 3-month high against the euro after reports that ECB board members are concerned the single currency’s strength might impact on growth. Britain and the EU remain far from a trade deal which needs to be approved by October as the transition period will end this year.
PMI data for the UK and the eurozone later today will be watched closely to see which of the two blocs is showing a stronger recovery. A number of other factors like more stimulus from the Bank of England and new taxes by Chancellor Sunak might see a volatile EURGBP in the coming weeks. Meanwhile RSI is showing an oversold GBP.