The pound opened at 1.1394 against the euro this morning, according to figures from Bloomberg.
The pound peaked at an eight month high last week against the euro, and could continue to have a stellar week.
Sterling is particularly strong against the dollar at the moment, and there is potential for it to triumph over eurozone currency too.
Speaking to Express.co.uk, Laura Parsons, TorFX currency analyst revealed what she foresees for the pound this week.
She said: “After peaking at an eight-month high of €1.150 last week, the GBP/EUR exchange rate dropped from its best levels in the wake of the European Central Bank’s (ECB) rate decision.
“Speculation about the future of ECB monetary policy drove the euro higher across the board on Thursday and the common currency held gains heading into the weekend.
“With UK data lacking, speeches from ECB officials may be the main cause of GBP/EUR fluctuations in the hours ahead. Any vaguely hawkish remarks could see Sterling lose more ground to the euro.
“However, the pound remains at post-referendum highs against the US dollar and has the potential to extend last week’s bullish run if sentiment surrounding the UK’s economic outlook remains positive.”
Friday saw the pound lose slight ground it had gained against the euro.
The drop compared to Thursday came after Mario Draghi, European Central Bank president, spoke about the euro in a speech.
He said inflation was on track for its two per cent target, which instilled confidence in the euro.
However, he added there would be “very few chances” for an interest rate hike, which limited this confidence.
On Wednesday, TorFX currency analyst Laura Parsons said, despite the pound “moving away from its best levels”, it may still “rally” later in the day.
“The GBP/EUR exchange rate moved away from its best levels on Tuesday despite encouraging UK public borrowing data as the German and Eurozone ZEW economic sentiment surveys impressed.
“All measures outperformed expectations, indicating that confidence in the bloc is improving despite political uncertainty in Germany.
“However, GBP/EUR remains close to €1.140 and the pairing could rally later today if the UK’s average earnings data reveals a surprise uptick in wage growth.”
