The exchange rate sat with pound sterling at €1.0969 against the euro this morning, according to figures from Bloomberg.
This is in contrast to the much poorer €1.089 seen on Friday, which was a result of sterling being hit by a strengthening euro.
EU currency benefited from comments made by European Central Bank (ECB) President Mario Draghi.
The president revealed interest rates in the Eurozone would be kept on hold.
Mr Draghi also confirmed a decision on the Bank’s controversial money-printing programme will be made in October.
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.
Laura Parsons, currency analyst at TorFX, said: “Last week the GBP/EUR exchange rate tumbled following the European Central Bank’s rate decision – despite a complete lack of action being taken.
Pound to euro exchange rate: Sterling UP against last week’s figures
Pound to euro exchange rate: Bloomberg revealed markets opened at €1.0969
Sterling could be in for serious volatility tomorrow when the UK’s latest inflation stats are published
“Since then the pound has returned to trading above €1.090, but sterling could be in for serious volatility tomorrow when the UK’s latest inflation stats are published.”
Explaining how the inflation statistics could affect the pound, Laura said: “Rising inflation would be pound-supportive, as it would up the odds of the Bank of England remaining divided on when to increase interest rates, while weaker inflation is liable to send GBP/EUR reeling.”
The pound was also affected last week by UK manufacturing and industrial production stats.
Whilst sterling is facing a potentially volatile week, the strengthening euro is not all good news for the ECB, as it makes exports from the eurozone less competitive, which could hamper growth.
Pound to euro exchange rate: The euro has been very strong in recent months
Pound to euro exchange rate: Sterling is facing a potentially volatile week
The currency strength also pushes inflation down, which is still below the bank’s target.
Mr Draghi expressed concerns about the euro, and reiterated worries that inflation is still lacklustre.
The ECB president told a press conference: “Recent exchange rate volatility represents a source of uncertainty which requires monitoring.
“A very substantial degree of accommodation is still needed for underlying inflation pressures to build up and support headline inflation.”