Euro Fumbles as German, Spanish Inflation Data Undershoot

The Pound to Euro exchange rate entered the new week near to November highs but could find itself confined to a narrow and potentially sleep-inducing range this week, one spanning the gap between Sterling's 100-day average at 1.1603 and technical resistance up near 1.1667.

GBP/EUR looking better supported, 200-week moving average forms main technical roadblock.

The British Pound has risen over the course of the week, with analysts saying a portion of the advance can be attributed to a firming up of Bank of England interest rate hike expectations.

Strategists at French bank Crédit Agricole are buying the British Pound against the Euro in the near term, finding the Eurozone's single currency has reached a short-term overvaluation.

The Pound to Euro exchange rate has built further on last Friday's advance early in the new week but its hat-trick of gains now has Sterling fast approaching a dense pocket of technical resistances near and above the 1.16 level on the charts, meaning the rally could be likely to stall in the near future. 

GBP/EUR struggling to hold gains, suggesting downside potential for coming days.