The exchange rate has wobbled after a series of political and economical events this week.
Sterling is buying €1.135, after sliding from weekly highs yesterday of €1.142.
Despite holding its ground in the wake of disappointing data out of the UK this week, the pound was hit by a soaring euro.
The single currency noted a sizeable boost yesterday after an update from the European Central Bank (ECB).
Eurozone inflation rose to 1.2 per cent in June from one per cent the month prior, exceeding expectations for the figure to remain static.
The ECB considered dropping the pledge to boost its huge money-printing programme if needed, but decided it still needed to see more evidence of higher inflation.
It was enough to boost the euro to a one-week high against the pound.
TorFX currency analyst Laura Parsons said: “Although the pound spent Thursday edging slightly higher against several of the majors in spite of this week’s disappointing UK data, GBP/EUR slumped to a one-week low.
“The pound dipped against the euro as the minutes from the European Central Bank’s latest policy meeting proved surprisingly hawkish.
“With the prospect of the central bank winding quantitative easing (QE) in this year lending the euro support, GBP/EUR fell back to the €1.135 level.
“However, if today’s UK trade data shows a narrowing in the deficit the pound could recover before the weekend.”
Today’s trade data release follows PMI figures for manufacturing, construction and services out of the UK earlier this week.
Each sector failed to meet expectations but the exchange rate wasn’t severely impacted.
Sterling remains volatile to a speech from Bank of England Governor Mark Carney today.
The pound to euro rate will also be eyed closely during the G20 summit in Hamburg, Germany, which begins today.
World leaders will descend on the summit on July 7 and 8 to discuss their wide-ranging political agendas.
Under particular scrutiny will be heavyweights Theresa May, Donald Trump and Vladimir Putin, who are due to sit at the same table.
