The exchange rate is buying €1.118 after climbing briefly to €1.121 yesterday.
Sterling managed to regain some ground after nosediving late last week.
But the rate has slipped again slightly after the IMF downgraded the UK’s growth forecast yesterday.
Britain’s economy is now expected to grow by 1.7 per cent in 2017, down from a previous prediction of two per cent.
The fund’s economy forecasts for next year remain at 1.5 per cent.
Despite the growth update, the pound hasn’t lost too much ground after rising earlier on Monday.
Sterling was buoyed by data out of the Eurozone which effectively weakened the single currency.
Services and manufacturing PMIs for the bloc both failed to meet expectations, delivering a hit to the euro.
The beginning of trade talks between the US and UK yesterday in Washington also strengthened sterling.
During his visit, international trade secretary Liam Fox remained firm on moving forward with Brexit.
He said: “Many people don’t want it to happen and wished the referendum went the other way, I would give them a dictionary and I would underline the words democracy, binary and referendum.
“What don’t they understand about the process – we are going.”
TorFX currency analyst Laura Parsons said: “After putting on a pretty dismal showing last week, culminating in the pound falling to an eight-month low, the GBP/EUR exchange rate staged a modest rebound on Monday.
“The pound climbed by around 0.5 per cent against the euro, with GBP/EUR briefly moving above €1.12, as investors responded positively to the thought of the UK beginning trade deal talks with the US.
“The euro also came under a little pressure as services and manufacturing PMIs for the Eurozone and its largest economies fell short of forecasts.”
US-UK trade talks will resume today and could further influence the pound against the US dollar as well as other major currencies.
Out of the Eurozone, business confidence data from Germany is due for release.
Ms Parsons said: “If today’s German IFO business confidence measures show the decline expected, the pound could extend Monday’s gains against the euro.”
