Pound sterling opened at €1.1019 against the euro this morning, according to figures from Bloomberg.
The pound has been helped by news of the Repeal Bill potentially passing in parliament.
It is also rallying ahead of the release of new inflation data this week.
But it has also enjoyed a strong opening this morning due to negative comments from an ECB official dampening the euro.
Laura Parsons, currency analyst at TorFX, said: “The GBP/EUR exchange rate bounced back to €1.10 on Monday ahead of the release of the UK’s inflation data.
“While the pound was supported by hopes that the Repeal Bill would pass its parliamentary vote (helping to progress Brexit negotiations) the euro was undermined by comments from ECB official Benoît Cœuré.
“In a lengthy speech, the board member discussed the impact euro strength is having on inflation.:
Laura also revealed there is a potentially bright outlook for the pound today.
Pound to euro exchange rate: Sterling has opened with good news this morning
Pound to euro exchange rate: Bloomberg showed sterling opened at €1.1019
Today the UK’s own inflation stats could be a significant cause of GBP movement
She continued: “Today the UK’s own inflation stats could be a significant cause of GBP movement.
“If the CPI figures have a positive impact on Bank of England rate hike expectations, the pound could extend gains against the euro.”
Yesterday, pound sterling showed signs of improvement against the euro, rising to €1.0969.
This was in contrast to the much poorer €1.089 seen on Friday, which was a result of sterling being hit by a strengthening euro.
Pound to euro exchange rate: Sterling is in for a volatile week
Signs of improvement for pound sterling come after the eurozone currency has surged to multi-year highs against the pound and US dollar in recent weeks amid expectations that policymakers will start to scale back quantitative easing.
Last week’s QE concession fuelled the euro’s strength and the exchange rate suffered as a consequence.
But Britons should not get too excited yet, as news this week could affect pound sterling negatively.
This means sterling is facing a potentially volatile week.