The euro has retraced 2% this week from the EUR/GBP high at the end of last week – last seen in June 2014. Equally, the Euro has edged down from the six-month highs seen against the US Dollar on Tuesday. With risk sentiment improving across the board, the Euro along with the Japanese Yen has been the main loser this week.
With the Bank of England re-affirming their position that they are not looking to ease monetary policy in the near term, the Pound may have found its floor against the Euro for now. The European Central Bank monetary policy meeting is held next Thursday in Frankfurt and should give us further insight as to how the latest triple stimulus measures have taken hold.