The pound is buying €1.130 this morning, after hovering around this rate for much of yesterday.
Sterling has retained its position after recovering from a weekly low of €1.124 at the start of the week.
It was slightly buoyed yesterday after Eurozone construction data took a hit.
Output shrunk by 0.7 per cent in May, the second decline in the last three months.
The sector accounts for almost 10 per cent of GBP for the European Union.
Despite enabling the pound to edge higher against the euro, the data failed to deliver any significant boost to the exchange rate.
TorFX currency analyst Laura Parsons said: “After the excitement of Tuesday’s inflation data, Wednesday was pretty dull in terms of UK news.
“GBP/EUR did manage to record a modest gain of 0.3 per cent however as Eurozone construction output slumped and speculation about today’s European Central Bank (ECB) policy meeting swirled.”
Today’s ECB’s meeting is set to impact the exchange rate, with president Mario Draghi expected to give an update on the bank’s quantitative easing policy.
And it’s not the only item on the agenda.
Ms Parsons said: “The pound could climb this morning if the UK’s retail sales statistics show the forecast increase in consumer spending, but further GBP/EUR volatility is likely later in the day if the ECB offers some clarity on its policy plans.
“Any indications that quantitative easing will soon be unwound would be EUR positive while cautious comments will see the common currency fall.”
Sterling has been scrambling to climb back against the euro since it nosedived on Tuesday after inflation data out of the UK.
CPI figures for June showed core inflation slowed from 2.6 per cent year-on-year to 2.4 per cent.
Overall inflation has slid from 2.9 per cent to 2.6 per cent, while prices stagnated on the month instead of growth slowing from 0.3 per cent to 0.2 per cent.
The decline in the pace of price growth is the first seen since October 2016.
