The pound euro exchange rate is 0.048% lower on the day with GBP to EUR at 1.1389 at 9 AM. The pound dollar exchange rate is 0.399% higher with 1 GBP = 1.6111 USD. The pound to Australian dollar exchange rate is 0.129% lower with 1 GBP = 1.5119 AUD. "We saw some fairly major swings on a Monday session that looked set to be a quiet start to the week. Sterling was very much out of favour yesterday, perhaps in anticipation of some dovish MPC minutes tomorrow," says currency analyst Richard Driver at Caxton Fx. Today’s currency trading session brings the Bank of Canada rate statement. Economic figures have been broadly positive out of Canada of late, but no hike is expected from the current 1.00% base rate. We also have some German economic sentiment data released today, which could weigh on the euro if forecasts are accurate. The pound to euro has given away a cent from yesterday morning’s highs up at €1.1480, as the euro enjoyed a rather undeservedly strong day. The headlines surrounding the eurozone remain very negative indeed this week. Further euro-era highs were set for yields on Spanish and Greek bonds yesterday. There is prevailing scepticism over whether any concrete measures will emerge out of Thursday’s summit between EU leaders. "GBP to EUR is trading down below €1.14 and should be able to rebound today. It is difficult to envisage the euro making any sustained gains over sterling in the current environment, particularly if bond sales in Greece and Spain throw up further euro concerns today," says Driver.

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