The tragedy prompted politicians to cancel their campaigning for the upcoming general election.
TorFX currency analyst Laura Parsons said: “With political campaigning suspended in the wake of Monday’s horrific terror attack in Manchester and UK data lacking, movement in the GBP/EUR exchange rate has been rather muted this week.”
Sterling’s position remains vulnerable to the release of the UK’s GDP data for the first quarter of 2017 this morning.
Ms Parsons said: “If UK growth is shown to have slowed considerably in the first three months of the year the pound could fall against the euro in the hours ahead.
“As it stands, the UK economy is believed to have expanded by just 0.3 per cent in the first three months of the year.”
Analysts have forecast annual GDP growth to rise from 1.9 to 2.1 per cent.
But a significant slowdown is expected on quarter-to-quarter figures, from 0.7 per cent to 0.3 per cent.
Further ailing the pound is the relative strengthening of the single currency.
European stock markets have intensified their demand for euros in recent weeks, as markets speculate over the European Central Bank’s quantitative easing programme and possible interest rate hikes.
Traders have also anticipated the ECB could scale back its money-printing programme amid better than expected economic data from the bloc.
Manufacturing data out of Germany delivered a further boost to the euro this week.
Despite its disappointing performance agains the euro, the pound has climbed back against the US dollar overnight, to reach US$ 1.30 this morning.
