The exchange rate is buying €1.143, holding onto the highest levels seen in almost a month.
Sterling jumped against the euro late last week after comments from Bank of England (BoE) policymaker Ian McCafferty about monetary policy in the UK.
Mr McCafferty said his vote to hike interest rates should remain unchanged in the next Monetary Policy Committee (MPC) meeting in August.
He also spoke out about money printing and called for a rethink on the bank’s quantitive easing measures.
The pound could be delivered a further boost today as Brexit negotiations resume in Brussels.
Brexit secretary David Davis has promised to make “real progress” in negotiations with the EU later today and called on both sides to “get down to business”.
Mr Davis said: “We made a good start last month, and this week we’ll be getting into the real substance.
“Protecting the rights of all our citizens is the priority for me going into this round and I’m clear that it’s something we must make real progress on.”
Also on today’s agenda is the release of Eurozone inflation data.
With expectations the figure will fall short of expectations, the pound could strengthen against the single currency.
Laura Parsons, currency analyst at TorFX, said: “The GBP/EUR exchange rate surged back to a three-week high at the close of last week as the pound was bolstered by positive progress in Brexit negotiations and rate hike comments from a Bank of England (BoE) official.
“The euro, meanwhile, was struggling under expectations that the European Central Bank (ECB) will refrain from committing itself too much to winding down quantitative easing by a set date.
“Eurozone CPI data could help the pound climb further as the day progresses as inflation in the currency bloc is forecast to come in below initial estimates.”
Also ahead this week is the release of UK’s latest Consumer Price Index (CPI).
Inflation is expected to slow for June, after soaring to 2.9 per cent since the start of 2017.
A slight drop in inflation might not cause the pound to wobble significantly, as the widening gap with wage growth could be detrimental for consumer spending.
